Cape Verde A 'Major Emerging Investment Market'

With capital gains in the region of 11% last year, a growing local and international demand for rental accommodation and the recent introduction of mortgages, Cape Verde is being tipped as the next big thing for canny property investors, according to property investment specialists Assetz.

An average two-bedroom property costs just £75,000, with a long-term view to maximise returns.

Since towards the end of 2006, investors in Cape Verde have been able to take advantage of Euro mortgages, enabling them to pay deposits in the region of 25 – 30% and therefore enjoy higher returns on their investment.

The Assetz Property Investment Tracker currently shows total returns of 40% on cash invested in Cape Verde, based on gross yields of 9% and capital growth of 11%, on an average 2-bedroom property bought with a mortgage of 75% LTV.

Martin Sadler, Sales Manager of Assetz International comments, 'We have watched Cape Verde develop as an investment destination with interest over the last 12 months, during which time it has shifted from high-risk into the medium-risk category of investment.'

'As major infrastructure is developed and influential holiday companies such as Thompson Holidays and RIU Hotels are attracted to the islands, Cape Verde is fast becoming an attractive medium-risk emerging market for overseas investors.'