Investment Property Growth & Forecast

Projected Growth

Actual capital increase statistics for the islands are not published by a single source, however according to the Noscasa Cape Verde property index¹, property values on average have increased by 17% between January and October 2006. Off-plan construction projects are providing evidence of a growth rate in the region of 20% in the first 9months of 2006². Capital growth on the Cape Verde Islands is expected to increase at a similar rate over the next 36 months, and then level off to a more reasonable rate of return.³

Projected Returns

Using apartments for illustrative purposes, based on an initial off plan purchase price of 2000 euros per square meter applying a very conservative level of capital appreciation of 15% per annum on the property value:

Month	Average Price / M2 - 2 Bedroom Apartment "Type B2"
Feb 2006	1,250 €	Cumulative % Increase
April 2006	1,370 €	9.6%
July 2006	1,395 €	11.6%
September 2006	1,395 €	11.6%
November 2006	1,500 €	20%

This equates to a 20% increase over a 9 month period

¹ 'Cape Verde' very much an emerging market' is not readily thought of as a property hotspot. But this is set to change. With double-digit property appreciation over the last three years, it is on the verge of take-off. According to the Noscasa Cape Verde property index, properties have gone up by 17% between January and October this year alone.'
The Guardian, Dec 2006

² Standard 2 bedroom apartments on Villa Verde an off plan construction project have seen continuous price increases through 2006, cumulating in a 20% average increase over a 9 month period. This level of increase is common place with off plan projects reflecting not only the natural levels of capital growth for the Islands but also reflected by demand for the project.

³ Based on projected increases in Tourism, current levels of Capital Growth and forecast demand for residential property on the Islands.