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CAPE VERDE

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The Cape Verde Islands are a tropical archipelago comprising nine inhabited islands, plus an uninhabited island and eight islets, in the Atlantic Ocean. The islands are located 500 km west of the coast of Senegal (West Africa) and 2,400 km north-east of the coast of Brasil (South America). The islands are dispersed over an area of approximately 300 km north to south by 400 km east to west.

More commonly known for their proximity to the Canary Islands and for being based on the same latitude as Barbados, Cape Verde is home to Europe's closest tropical islands. Yet it's just a five-and-a-half hour direct flight from London and with only a one hour time difference visiting Cape Verde is refreshingly jet-lag free, unlike the Caribbean. With the opening of a new international airport on Santiago, the largest island and site of the capital, getting to Cape Verde will be easier than ever.

It is widely believed that Cape Verde is currently on the brink of an economic boom. Heavy investment in tourism and increased foreign investment in property and infrastructure create a perfect environment for fantastic returns on investment within this emerging market. With increased direct flight services to Cape Verde from Europe, the islands' true potential as a mainstream holiday destination is confirmed.

Almost 90% of the hotel occupancy rates in Cape Verde are from foreign visitors, with the majority of tourists visiting the islands historically originating from Portugal and Italy. However, recent trends have seen vast increases in levels of tourism from a variety of origins, with UK tourism rising by an amazing 800% between 2006 and 2007.

With hotel occupancy rates running in excess of 80% per annum and a limited supply of self catering accommodation, the Cape Verde islands offer a unique opportunity for real estate investors looking to achieve high rental yields by taking advantage of the massive increases in tourism over the next decade.

The INE reported that tourism in 2008 was increasing by approximately 22% per annum and that this figure is anticipated to continue well into the next decade, with Cape Verde forecast to attract in the region of 500,000 tourists to the Islands in 2009, and INE projections suggesting that an annual rate of 1 million will be surpassed by 2015.

These unprecedented increases in tourism are resulting in much heightened demand and rental yields for the residential holiday rental sector. Sal Island receives the greater share of holidaymakers, with over 60% of the country’s hotel bookings, with Sao Vicente as the second most popular location.

The appeal of Europe's first tropical island tourist destination continues to draw increasing numbers of visitors to the islands each year.

Investment in Cape Verde is increasing rapidly as investors and holiday home purchasers become aware of its unrivalled potential. Capital growth estimates are currently running above 15% per annum, with higher luxury frontline beach developments reporting increases of up to 20% per annum.

Cape Verde - Key Factors:

Political and economic stability with continuing growth
IMF reports steady 6% growth in GDP
Currency linked to the Euro
12 month holiday season
Voted in the top 10 tourist destinations for 2007 by Expedia.com
Ongoing phased investment and construction into both Sal and Santiago airports has resulting in increased routes from scheduled airlines.
Livingston and Hapagfly have each added an additional weekly flight from Germany, Astraeus offers charter flights from London Gatwick and Manchester, and TACV will operate a twice weekly flight between Stanstead and Praia from October 2007. Massive external investment into developments to cater for increased access from Europe, including over 2.5 billion euros by Cape Verde Developments and 100 million euros investment from Nikki Beach into entertainment resorts