News: Cape Verde's tropical appeal

Tue, 23 Oct 07

Europe’s closest tropical island paradise, Santiago Island in Cape Verde, is set to offer unrivalled investment returns, with the introduction of direct flights from London and the island topping a poll of tourist hotspots...

Sambala, the leading luxury resort and property developer in Cape Verde, which is based in Santiago Island, reveals that property prices have already increased by 15% since 2006, and under the backdrop of strong economic growth and a fast growing tourism industry, believes that the average property price will soar by over 75% in the next five years, as current trends are expected to continue.

Santiago Island is the largest island in Cape Verde, which lies 450km of the west coast of Africa in the Atlantic Ocean and was ranked No 1 in the ‘Top Ten’ tourist hotspots in 2007 by Expedia. It is the biggest and most enticing of all the ten Cape Verde islands offering the most spectacular and diverse scenery of the archipelago. 

Tourism growing substantially

The emerging tourism industry within the whole of Cape Verde has already grown substantially, with tourists increasing by 25% in 2006. However, this is expected to soar by a further 300% by 2015, and could be even higher in Santiago Island after the Sambala Resort will open to visitors next year.

In addition to excellent capital growth, Sambala Resort is expected to see higher rental yields than neighbouring Sal Island because there is a very low ‘bed stock’ on the rest of Santiago Island. Investors can also benefit from the currency being linked to the Euro, which will enable investors to take advantage of Euro mortgages that will be available next year.

 Investment into the Islands’ infrastructure is also well under way, as the Cape Verde authorities have approved investment projects totaling $300 million, which has been invested in for example, two new internationals airports, roads, energy resources and education. The economy is performing well, with the IMF reporting a steady 6.5% growth in GDP, and with £1.5 billion private investment scheduled for the next five years the rate of economic growth is set to continue.

Significant investment

Dominic McGlynn, Vice Chairman of Sambala Resort comments: “Until recently, Santiago Island was beyond the reach of holiday makers and property investors. However, with significant investment and the introduction of direct flights, the island’s true potential as a mainstream holiday destination is about to be realised.

“The island’s mountainous area offers superb hiking and abseiling with volcanic peaks to explore, breathtaking views to enjoy and the coral reefs, teeming with tropical fish, offer some of the best diving in Cape Verde. As the island lies due south of the UK, visitors can travel there within 5½ hours from London, with the added bonus of not suffering from jet lag.”

For more information:  http://www.sambaladevelopments.com

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