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Equity Growth

 

As a purchaser, you will combine the benefits of a consistent rental income, fixed for the first 3 years of operation as well as an increase in property value.

The capital growth potential in Cape Verde is underpinned by various key factors.

  • Cape Verde has demonstrated a consistent growth in touristic demand for the last 20 years

  • Tourism growth is directly correlated to the capital growth of property in Cape Verde

  • This means tourism is driving the economy and this directly impacts the value of your property

  • There was a 13.6% increase in tourist arrivals in 2016

  • Tourist arrivals are forecast to increase by a minimum of 5.8% p.a. to 57.3% of GDP by 2027

  • Scarcity of available beach-front land at the right price in a developable area underpins capital growth

  • The market is unlikely to become saturated due to supply of quality bed nights versus demand

Cape Verde: Visitor exports and international tourist arrivals

   

 

 

The Resort Group PLC conduct regular valuations by a globally recognised and accredited valuation company. These are done in accordance with RICS Valuation Standards.

Previous projects by The Resort Group PLC demonstrate growth in value between off-plan purchase and Resort opening.

 

Capital Growth Example: MELIÃ Dunas Beach Resort & Spa

 

Property Type

Average Off-Plan Price (5 Year sales period)

Valuation on Completion* (2015)

Average Capital Growth p.a.

1 Bed

 €115,940 €164,093  8.3% 
 

2 Bed

 €166,250 €214,406   5.8% 
 Villa  €367,320  €472,483   5.7%

*Based on Savills valuation                                                                                                                                           6.2% p.a.

• Capital growth of 6.2% p.a. across the Resort
• 1 bed properties 8.3%. TRG current Resorts have high proportion of 1 beds
• Tourism has continued to grow since 2015
• TRG now has guaranteed occupancy agreement with the world’s largest tour operator • Current capital growth projections are 5-8% p.a.

 

5 Year Example Return: Off Plan Property Purchase

 

Phase

Capital Growth

Property Value

Rental Yield

Rental Income

Construction

Year 1 5%  €157,500    
  Year 2 5%

€165,375

   
 Operational Year 1 5% €173,644  5%  €7,500 
   Year 2 5%  €182,326   

6%

€9,000 
  Year 3 5% €191,442  7%  €10,500 
     €41,442   €27,000 
    Total    €68,442 
                                              9.13% p.a

• Average 9.13% p.a. over initial 5 year period
• Assumes capital growth levels below previous Resort performance • Includes fixed rate of return during first 3 years of operation

   

Contact Us

 

 

 

Suite 4, The Boot Factory
Cleveland Road 
Wolverhampton
WV2 1BH

info@resortgroupglobal.com
Phone:+44 (0) 1902 875395