Cape Verde Mega-Developments Indicative of Changed Industry

As many of you will know, The Resort Group just opened its Tortuga Beach and Spa Resort on Sal Island in the Cape Verde archipelago off West Africa. In the announcement of the opening the firm announced another development that it is currently building right beside Tortuga. The 1,210 unit Dunas Beach resort is twice the size in more ways than one. We have also learned that the group plans to build a luxury hotel resort between the two developments.

This is indicative of how the overseas property industry has changed in the past few years. Whereas before the crisis, emerging markets like Cape Verde would be peppered with small developments from small to medium sized enterprises, now we are seeing larger resorts, multiple resorts in the same area by the same developer, and resort villages by developers working together.

This is undoubtedly because of the mergers and acquisitions made at the height of the crisis, as bigger companies found strength in numbers, and smaller ones accepted low prices to avoid bankruptcy.

This could be seen as both good and bad for consumers in the overseas property industry: good because the market is now dominated by large companies, which are reputable and make purchasing property safer, because there is a smaller risk that they wouldn't be able to make refunds in the event of trouble. Bad because fewer companies means less competition and therefore higher prices.

The Resort Group's huge resort on Cape Verde also shows off another trend, the one of increasing quality. Between the three that area of Sal Island will be home to one of the world's finest resort village community, hands down.

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Sal, the Most Developed Cape Verdean Island

In the Cape Verde property market, Sal is the most popular island in the Archipelago, unhindered by the fact that it is the most developed. The island is just 30 km long and 12 km wide, and the town of Santa Maria at the southernmost point is a well-established tourist resort.

It's easy for visitors to find a good restaurants and interesting shops, while it also has a lovely town square. The port town of Palmeria, and the town of Espargos are also worth a visit. The beaches here are unpolluted, and as yet there is no lack of space for your beach towel. More and more people are discovering this island, and there is an increasing need for rental property.

The islands have been subject to massive government investment to bring the infrastructure up to world-class standards. As Cape Verde has been granted EU special status it became eligible to receive £1.2 billion of public funding.

The tourist facilities being offered are becoming increasingly sophisticated as the islands are developed, and Cape Verde is ideal for buy to let investors wishing to get in early. Many are choosing to use a Self Invested Pension Plan to purchase property as this is the most tax efficient way to invest.

Anyone buying property in Cape Verde receives the full ownership and has the freedom to sell whenever they wish. The year-round good weather presents excellent rental opportunities, especially as its close proximity to Europe makes it ideal for winter getaways. Property here has been forecast to appreciate considerably during the next few years as the islands become more established and well known.

Akbuk One of Turkey’s Secret Treasures

Turkey is in the overseas property headlines on an almost daily basis as it becomes one of the most popular places in the world to buy property. According to the Association of Real Estate Investment Companies (GYODER), sales to foreigners totalled $2.5 billion last year, a 40% increase on 2009 and almost as much as the $3 billion recorded in the 2 years ending 2008.

Akbuk, which is a little town on the coast near Altinkum (Didim) is one of Turkey’s undiscovered secrets. Altinkum is already one of Turkey’s top tourist towns, and Akbuk is a chance to get in early on what will ultimately become a hotspot in its own right.

French holidaymakers have long discovered Akbuk’s charms, and its popularity brought the addition of a growing number of 5 star hotels since 1995. The town is also close to Bodrum and Izmir, both of which have international airports serving an expanding number of international routes. For a small town Akbuk is one of the most activity-packed attractions in the region.

On top of its great beaches and harbour, Akbuk offers boat trips and many archeological sites including the Temple of Artemis -- one of the seven wonders of the world – and a 44,000 seat amphitheatre – one of the largest in the ancient world, as well as Pamukkale, a world Heritage site that has been created by mineral rich water creating some of the most elaborate calcium formations in the world.

As you’d expect for the area, the cost of living – and therefore holidaying – in Akbuk is very low, compared to the UK, but even compared to other parts of Turkey. It also benefits from a low crime rate, and wide use of the English language among its friendly population.

Hurghada Property Investment: What’s Not to Like?

Hurghada is really picking up popularity in the overseas property world, and is now a force to be reckoned with. The fact that the government is investing heavily in the area is undoubtedly helping a great deal.

Another huge plus is the large and growing range of flights to the area from throughout Europe (including the UK), making it possible for some people even to enjoy long weekends in the sun-drenched destination. This, combined with the developing infrastructure and year-round-warm climate makes for strong rental income on well-chosen Hurghada properties.

The beaches and watersports are plenty for most visitors, but the city is alive with activity, some have even compared it to Cairo because of its authentic Egyptian markets and souks. There are also plenty of restaraunts, clubs and wester-style shopping centres in the tourist district.

On top of that Hurghada has a banking district as well, which is located near a promenada which has further bars, nightclubs and cafes. For the more adventurous traveller there are desert excursions over the bedouin lands, including jeep safari tours featuring a camel ride.

Egypt is one of the world’s fastest growing economies, and even after its recent troubles has great prospects for business growth. The government is offering 1 year tax free to anyone who starts a business in the country, and this can be done with very little capital.

In short Hurghada has pretty much everything a property investor is looking for in an overseas investment destination.

Investing in Hurghada Property

Hurghada is rapidly becoming the newest and most sought-after destination in Egypt. That is saying something given its location on the Red Sea Riviera has been designated a growth and investment zone by the Egyptian government as they recognise it as the fastest growing tourist destination in the country.

Hurghada has been expanding since the 1980s, but the current growth in tourism has increased the need for rental property as centrally located resorts can have an occupancy rate as high as 90% year round. This is because it's a popular destination with holidaymakers from around the world but particularly with Europeans and Russians, but also with Egyptians.

Although the major attraction of Hurghada is of course the sea and the unlimited opportunity for water-sports. It's also becoming well-known as a luxury resort that offers high standards of service and accommodation, with some even comparing it to the Caribbean.

Much of this is due to the high levels of foreign and domestic investment that include improved access to Hurghada through the new airport, and a complete refurbishment of the central resort area and the promenade which is known as the Golden Mile.

The marina opened in 2008 and has a good selection of upmarket restaurants and bars which guarantees its attraction to visitors for many years to come. El Gouna golf course is an 18-hole championship golf course which is just a short drive away from central Hurghada, and is a good example of the kind of private investment that has gone into the area already.

A lot of the visitors to Hurghada choose to return year after year, especially during the winter months as its close proximity to Europe makes it ideal for a weeks holiday.

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Attractions for tourists visiting Cape Verde

Cape Verde is gaining a lot of attention from overseas investors, and much is being done to promote the country as a tourism hotspot. Last year Lonely Planet named it as one of the top destinations for 2011, and the local government is pumping huge amounts of money into new infrastructure. As the Cape Verde property market is driven by tourism, this is also boosting property demand as well.

There are also a number of new and luxurious developments taking place, and figures show that tourist numbers are increasing by 22% annually, with the country expected to have 1 million visitors each year by 2015. Even though it isn't yet very well known it does have much to recommend it as a tourist destination which is good news for the buy to let investor.

It has a vibrant culture which mixes African, European and Caribbean elements, and the countryside is truly beautiful. The centre of Cape Verde is Cidade Velha which was the first European colonial outpost in the tropics back in the 15th century, and was originally called Ribeira Grande before being renamed in the 18th century. The town was placed on the UNESCO world Heritage list in 2009 and is located in the south of Santiago. It still has some of the original street layout and impressive remains dating back to the 16th century.

Visitors can also climb a volcano on the island of Fogo, which last erupted in 1995, although it is advisable to take a guide. The island of Boa Vista has a reputation for being one of the most important nesting spots for loggerhead turtles on the planet. Of course sunbathing is perennially popular with holidaymakers, and Cape Verde is often called the new Canary Islands. It probably won't be much longer before it is as well-known as the Canary Islands.