The International Second Home Market

If you have read this blog often enough you will know that we consider places like Cape Verde “the next big thing” in the overseas property markets due to key factors that include a stable and long lasting government, booming economy (fuelled largely the tourism industry) and proper use of international funds allowing for huge structural developments in Cape Verde including health, education etc..

Today I am writing about the flip side of the industry – and the buzz word on everyone’s agenda right now - Russia! WSJ headlines “From Russia with Cash”, the BBC reports that “Russians snap up Australian luxury” and the Business Times Online asserts that “Russians …invest its oil billions abroad”. According to various estimates, assets belonging to Russian citizens in the West amount today to over €300bn and here is why they will keep investing abroad;

1 . Unreasonably high priced properties (expected to drop at some point) make real estate investment at home un-promising
2. Russian stock market is unstable and has in fact dropped significantly
3. Russia has “no reliable (if any) pension plan” so real estate investment abroad is considered for many the safety net.

More Europeans Retire In Portugal

Portugal is one of the most sought after destinations by Europeans, in which to retire, concluded a study ordered by the Aga Khan foundation and conducted by the Portuguese institute for Regional and Urban Development and the Boston Consulting Group.
The study reveals that British and Germans are the Europeans which most seeking Portugal as their home abraod, choosing quite coastal regions such as the Algarve, the Estoril Coast and the island of Madeira.
The study estimates that there are currently 49.000 British retired home owners and 50.000 Germans.

“If I could I would buy Brazil”

Are the words of billionaire real estate guru Sam Zell. Brazil is one of the few countries which seems truly untouched by the world economic downturn with a Q3 GDP growth of 6.3%, not only in relation to the same period of time last year, but also in relation to to the current year’s first and second quarters.
Additionally, as an oil producing country now, Brazil shows absolutely no signs of slowing down any in 2009.

Looking Ahead and Holding Steady

Cape Verde’s politicians have to this point been very smart in their dealings with the international community, and from the overseas property market perspective, the archipelago is firmly on the map.
- Tourist numbers are still climbing
- Overseas investment is too
- Cape Verde has embraced as many international organizations as it can
- Infrastructures are tangibly developing (roads, transport, services, education, health...)
- And the government is now in the process of approving tax cuts and maximizing fiscal benefits for home owners, in an effort not only to shield from the crises, but indeed to take any advantage that can be gained from it.
CV 's Prime Minister José Maria Neves now urges business owners and investors in Cape Verde to do their part; innovate, provide quality goods and services and invest in an ever promising future!

Added Value of Architecture in Real Estate

"…better design has a longer life span, appeals to the market, generates better returns and, of course, there are the issues involving sustainability. But there’s more to it than that - people want to be connected to art" - states renowned architect Daniel Libeskind, one of the most talked about contemporary architects, in an effort to dispel the myth that architecture is limited by the market. Among other projects all over the world Daniel Libeskind is the architect responsible for New York's Ground Zero.

Investing in Cape Verde - Wise Move

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Property Frontiers, highly rated international property analysts, hail Santiago, Cape verde as a hot spot for investment "Investing in Santiago is a wise move". On the whole Cape Verde is enthusiastically described as an attractive and growing destination, with stable government and steady financial growth, stressing as another factor of stability the fact that its Escudo is indexed to the Euro. In reference to Santiago specifically, it describes the island as the most cosmopolitan desitination which among other attributes, should provide strong returns as it is anticipated to the focal point of the archipelago's booming tourism industry.

Algarve, Portugal, Homes Abroad

ILM-THR just released their second anual report on the Portugal Residential Tourism Market which monitors second home owners with homes in the Algarve, Portugal. Among the data some of the interesting results revealed included;
Even though the British take up the biggest foreign market-share in terms of number of homes owned, the Scandinavians take the lead on money spent, being responsible for the most expensive buying. The study reveals that two and three bedroom apartments are the most sought after properties, and that central and eastern Algarve are the most popular destination for foreigners.

Good News

With all the financial havoc dominating media today, I wanted to make sure our readers got some good news. It really was nt that hard to find. The United Nations Conference on Trade and Development recently launched their 2008 report on Trade and Development which stated that “for the first time we are seeing a worldwide crises which is focused in the heart of the wealthiest nations and has had very little impact on developing and emerging economies” World GNP is expected grow approximately 4.9%, a figure which is largely based on the prediction that emerging economies will maintain their average 7.0% growth and that Europe will see it’s growth rate in the 1.4%.
At Design Resorts, this is something we have known for a long a time :)

"The Amazing thing about Cape Verde is that it has not been discovered earlier”

Here are just a few of the statements which can be heard on Jo Sinnott's "Next Big Thing", series aired on U.K. Real Estate TV

· Caribbean style beaches, rich history, laidback lifestyle and vibrant cosmopolitan community
· For those looking to invest, Cape Verde is limitless
· Buying property is straightforward, with a strong legal system which protects property investors
· Quality and sustainability are key for the growth of Cape Verde.

Suggested reading!

I hear the information is clear, consise and contemporary, and that you don´t have to be a professional to understand it. Great real estate investment do's and dont's!

Britons Still Buying Abroad!

A study conducted by the real estate firm Savills and the travel agents Holiday-Rentals.co.uk, suggests that Britons who own property overseas were not questioning their decision to buy a second home abroad, despite steep rises in the cost in airfare to reach those destinations (66%). Furthermore Savills’ director of research points out that the number of British second homeowners buying property in exotic locations is rising. She believes that buying an overseas property, both for leisure and investment purposes, remains a key aspiration for many Britons, who are first and foremost attracted by the prices of property outside the UK.

Around 35,000 properties have been purchased in the past 12 months. 67% of all purchases falling into the leisure, and those buying purely for investment accounting for the remaining .
17% of purchases.

Green Real Estate!

Keep your eyes peeled for the following terminology "green real estate", "eco brokerage" "sustainable real estate investment". With REITs (real estate investment trusts) announcing 7.5% increase in property value and 3% increase in rent values after having bought up half empty office buildings to give them fresh green starts, this has become the industry buzz . Insiders confirm that with demand growing, sustainable construction prices are noticebly falling and the world's leading top quality projects, both in the residential and office sectors are almost exclusively environmentally friendly.

Luxury Real Estate still a Solid Investment

Some interesting numbers from the much talked about Architectural Digest / Sotheby's International Real Estate Survey
· 85% of respondents agreed that “Real estate continues to be one of the better investments a person can make.”
· 72% of respondents believe their primary home value has remained constant or increased in value over the last 12 months (46% remained constant; 26% increased).
· Nearly two-thirds of respondents report that current conditions have “no effect” on their likelihood to sell their primary home (63%).
· In the coming year, 79% believe the value of their primary home will continue to remain constant or increase (55% remain constant; 24% will increase).
· In the next year, more than half (54%) of the million-dollar homeowners plan to buy, sell, build or invest in a new home.
· 69% of million-dollar homeowners agree that now is a good time to add to one’s real estate holdings.
· 71% agree, “Over time, nothing beats real estate for building one’s personal wealth.”
· Half (50%) of respondents think the media exaggerates conditions to make the market seem worse than it is.

To day is the day!

Today Cape Verde became the WTO's 153d member! This is a winning result for the archipelago which has been in negotiations to join for years.

The World Trade Organization (WTO) deals with the rules of trade for goods and services between nations at a global or near-global level. Though only launched in 1995 the trade regulations on which the organization is founded have existed since the first General Agreement on Tariffs and Trade (GATT), which took place in 1949.

Invest in a Second Home in Brazil

Brazil has in recent times been the word coming out of many an investor’s mouth, and the theme of a few of our own posts of late. Here are a few of the reasons why:

1. Currently Brazil is a Buyers Market: Lots of land for sale with prices which remains reasonably low
2. 100% free hold ownership (in other words full ownership) for foreigners, which in many countries is not the standard
3. Steady Economy and low inflation
4. Falling Interest Rates
5. Increasing Real Estate financing
6. Steadily increasing number of tourists7. Climate, 7,400 km of coastline, a beautiful tropical rainforest.....

World Trade Organization

Cape Verde is the 153rd member of the WTO. Considering the voting system of WTO, it's amazing that a such a small country as Cape Verde (400,000 inhabitants) retains the same amount of power as a big country like Indonesia with 110,000,000 inhabitants.

What was already streamlined is now even easier: Investment and business are the winners!

Rhetorical question

I woke up this morning thinking how lucky I am. I love my job and I really believe on what we’re doing!
I work for a company that is investing in the right places. We’re now receiving the dividends on the, at the time, bold decision of investing outside Europe.
The western economies are in the middle of an “old people” turmoil: the fundamentals are good, but the confidence in the future is lower than most of us can remember. The BRIC’s are growing with confidence and with market solidity.
The oil is more expensive? Who cares, for most of the new users in the emerging (growing) world it’s the first time they can afford a car. For them, it’s the difference between non consumption and consumption. For the westerners, and in spite of all the current ominous malthusians, the economies are far less oil and natural resources dependent than they were 15 years ago. Brazil is the new player in the energy ground, with oil, sugar cane growing like a weed and 8% of the farming land in the world (Petrobras is now bigger than General Motors, sorry lads). The economy is growing at a two digit rate and the best part is the reflection in my own paycheck!
Those who think that Brazil is still a third world fragile economy should look again... for S&P the investment grade (BBB) is now, and other agencies are expected to follow. In Cape Verde a growth above 7.5% is not bad for 2008.
Should I invest my savings in Europe or in the next big thing?

Growth Rate In Cape Verde Expected to Accelarate in 2008

Acording to the African Economic Outlook Report, produced annually by the OECD and the African Development Bank, a rapid increase in the rate of growth can be expected for Cape Verde this year. From 6.6% in 2007, to 7.6% in 2008 and an estimated 7.0% in 2009.

This rapid growth increase reflects a tremendous effort made by the Cape Verde government to comply with the public sector’s Investment Program, a substantial increase in internal credit (including private investment), and a large amount of direct foreign investment.

Marianne Myles, Newly Appointed US Ambassador to Cape Verde

Marianne Myles, has just been appointed Ambassador of the USA to Cape Verde. In her confirmation hearing before the US Senate she referred to the Archipelago as a “success story.” Among contributing factors the Ambassador listed the fact that Cape Verde is one of the oldest democracies in the African Continent, that it maintains political stability and that to keep corruption levels down, the transparency levels have been elevated. She adds that Cape Verde has come along way in matters relating to human rights, civil liberty, and government effectiveness and accountability.

The Ambassador went on to highlight Cape Verde’s strategic position in the North – South Maritime routes, and the potential it has to become the transatlantic bridge for tourism, commerce and investment.