RESIDENTIALsales
Property prices in the medium price range stacks up along with the deposit ratios to
have typically fallen 20–30 per cent in the facilitate much-needed cash flow. For this
last year and May on May, the number of reason, payment plans follow the Spanish
house transactions is down 40 per cent. model and products were launched with a
“With corrections having taken place, high deposit rate of between 50 and 85 per
I envisage modest growth will now be in cent. Buyers who stump up the full 85 per
the region of 4-5 per cent per annum. The cent deposit are relieved of the remaining
global economic crisis has allowed for a 15 per cent which is written off. “We help
slowdown to occur and for the government our clients wherever we can,” says Rob. “In
to address issues associated with addition to ensuring they are not exposed
infrastructure and the unprecedented to currency fluctuations by offering
construction boom. Today, we don’t have guaranteed exchange rates, the Group pays
over-supply and properties are being client’s mortgage payments for the period
absorbed by market demand. In today’s in which they are advanced and gives
market, locals are seeking three bedroom buyers who make a complete down
apartments, holiday homeowners want payment a six per cent interest on their
one and two bedroom properties and capital during construction.” Hotel
investors are after studios.” Excellence packs are also on offer via
certain payment options and are equivalent
INVESTING to over €26,000 – which is certainly an
In addition to foreign investors, Noscasa attractive proposition for many investors.
has seen significant increases in local Whilst other developers have acquired
spa and state-of-the-art gym. We’ve demand from public sector workers, low-cost land on other islands, Rob is
invested €4.2m in lagoon-style pools alone.” bankers, business owners, immigrants and confident in the growth potential of Sal,
The Group is currently in talks with Cape Verdeans returning home. There is which is home to CV’s principal
International hotel chains Marriott and Sol reinvestment from those who sold during international airport and fully equipped to
Melia with regard to operating the resorts the height of the market. refuel aircraft. Outbound flights from
and although half of the Tortuga Beach Half of the 482,000 population of CV live other islands, stopping at Sal to refuel, will
Resort was sold on a 4-star basis, the on the island of Santiago and are unable to add further delays to flight times and
Group is delivering a 5-star product to rely on agriculture due to lack of rain, adversely affect property values to some
acheive the right occupancy levels. 72 per cent of food is imported (CIA degree. The Group is seeing the Prime
Prime front line property in CV has held World Factbook, 2009) whilst 70 per cent Minister again in June and Rob will also
its value on the islands of Sal, Sao Vicente of GDP comes from commerce, transport meet the Minister of Tourism to discuss
and Santiago; developments such as Porto and public services. aircraft capacity amongst other issues.
Antigo and Salinas Sea are still doing well. Properties at the Group’s Dunas Beach
Paul Akwei agrees but says that other resort start at €90,000 for a one bed and CAVEAT EMPTOR
property prices in Sal have dropped by peak at €700,000 for a five bed detached Long-term, capital growth and lifestyle
around 30 per cent since mid 2008. villa with pool and 500sq m of grounds. choices are both good reasons to invest in
“Lower price range properties have At such high values, The Resort Group CV but whatever investment is placed it
suffered the most over the last year and, must ensure that the land acquisition value should only be made when fully informed
again with the focus on Sal, have lost up to about the islands. The pitfalls here are
45 per cent in value as demand becomes many! Buyers should avoid high risk ‘buy
more concentrated to the front line. direct’ discount offers and gravitate
towards lower risk developments built by
established developers with a successful
track record in CV. Port expansion and
growth of the energy and water sectors
look set to promote further private sector
activity (Economist Intelligence Unit,
January 2009), but it will be a long time
before CV catches up with the Caribbean.
With any luck, the government will
continue to insist on zoning and planning
restrictions and these beautiful islands will
never be over commercialised.
Above: Tortuga
resort under Danielle Simpson (BSc) is Creative Director of
construction. thebrandeffect. www.thebrandeffect.co.uk.
Left: how Porto
Antigo turned
Are you in overseas property? Add to this at
out (nice!)
www.propertydrum.com/articles/CV
PROPERTYdrum JULY-AUGUST 2009 41
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