In its fifth Global Hot Spots analysis, currency exchange specialist HIFX revealed that 13 per cent of the overseas homebuying-related enquiries the company received in July 2006 were for Cape Verde, an 8 per cent increase from the fourth analysis in March. Mark Bodega, marketing manager for HIFX, commented: "Cape Verde looks set to take over from the Canary Islands as many Britons' favourite islands off the west coast of Africa. Whilst buy-to-lets are popular, most people are buying a property as a holiday home because prices are so low." Made up of ten islands, Cape Verde boasts a similar climate to that of the Caribbean. While this has led to obvious comparisons being made between these two tropical groups of islands, Cape Verde is a little closer to home, and can be reached from the UK in 5.5 hours. "Year-round warm weather, direct flights starting from the UK in November and the opportunity to invest in an exotic location with political and social stability are just some of the reasons Cape Verde has become so popular", explains Adrian Lillywhite of Cape Verde property. "Add to this low property prices and beautiful beaches and most people believe they are onto a great investment opportunity", he adds.

According to the latest HIFX data, the African country has even overtaken Bulgaria as the third most enquired about destination for British buyers. Interest in Bulgaria slipped from 11 per cent in June to 9 per cent in July, leaving the Balkan country in fourth place on the HIFX rankings, behind France (30 per cent),  Spain (23 per cent) and Cape Verde. A number of other emerging markets, including Morocco and Turkey, also featured.

This isn't the only recently released data that suggests overseas interest in Bulgarian property is starting to subside, though. The Autumn Assetz Property Investment Tracker shows that as market growth slows and rental competition hots up, the total expected returns on a Bulgarian property have plummeted from the 104 per cent a year predicted in the previous investment tracker, to 44 per cent now. Annual house price growth in Bulgaria has slowed from 36 per cent to 17.8 per cent in this period.

According to the Assetz data, France currently offers overseas property investors the best return on their purchase, with a consistent rental market and capital gains of 9.1 per cent combining to make a total 62 per cent return on cash invested.

However, it is another emerging market which has caused perhaps the biggest surprise in the latest Assetz Investment Tracker. Low property prices, good bank lending and capital growth of almost 20 per cent means buyers of Polish property can expect a return of 61 per cent.

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For further information:
HIFX 
Cape Verde Property  
Assetz   

Read other articles about emerging property markets:
Investors take advantage of Dubai's vision
Estonia property: one to watch
Where to buy property in Cape Verde

Article published in October 2006