A real estate investment starts with a clear project: which asset you wish to transform, for what demand, with which resources and with what exit route. This guide proposes the questions to ask before examining a participation in Cape Verde and the documents with which to seek verifiable answers.
Start with the transaction
Buying a house to occupy or rent, taking part in the capital of a project company and financing a development are different decisions. Rights, responsibilities, access to information and the ability to recover capital change. The first step is to identify what is being purchased or financed and through which contract.
An initial summary should identify the property or land, the party entitled to dispose of it, the project status, the intended use of funds and the expected operational outcome. Land earmarked for value enhancement requires different checks from a building to refurbish or a property already let. A value creation plan must be supported by feasible steps, documented costs and a realistic timetable.
If, instead, you are looking for a house to purchase directly, you will find the dedicated pathway in the guide to buying in Cape Verde.
Understand the island’s market
Boa Vista, Santiago, Sal, São Vicente and Maio should be assessed as distinct contexts. For each initiative it is necessary to identify the end‑user, the available alternatives, the quality of access and services and the conditions that make the property usable. A useful comparison considers properties that are truly comparable in terms of location, purpose, condition and amenities.
The INE tourism statistics for 2025 differentiate arrivals, overnight stays and types of accommodation, with a different distribution across the islands. They are a contextual reference: hotel occupancy does not equate to occupancy of a private apartment, nor does it demonstrate its yield.
For a rental forecast you need specific assumptions on truly collectable rates, occupied periods, commissions, maintenance and management. For a sale you need comparable prices, absorption periods and payment terms. The date of the data must always be indicated and a marketing offer must be distinguished from a concluded transaction.
Check the asset, rights and authorisations
The dossier must enable an unambiguous link between the represented asset, its identification, the available rights and the proposed project. Title, the seller’s or company’s powers, any encumbrances, access and technical documentation must be examined, with professionals competent for the case.
The public property‑sale portal outlines the steps of asset identification, execution and registration, including the case of a mortgage. This framework does not replace the verification of the individual file. A floor plan or a commercial presentation, on their own, do not certify all the rights required for the transaction.
For a development project, distinguish what has already been authorised, what has been applied for and what remains an assumption. The financial model must state the time and costs associated with the required procedures. The property development guide explains this process in more detail.
Understand how capital is employed
A readable financial plan links outflows to the project phases: acquisition, design, due diligence, authorisations, construction, marketing and management. It must also include charges, interest, contingencies and resources required before receipts.
- Sources of funds: capital from the developer and any participants, loans and other resources, distinguishing available funds, signed commitments and negotiations.
- Uses: expenses already incurred and future costs, with estimates, deadlines and margins for contingencies.
- Cash flows: when money goes out and when it may return, including instalments, withholdings and collection periods.
- Additional funding needs: who steps in if costs rise or receipts arrive later, under which rules and with what impact on participants.
A bank’s involvement depends on its assessment and the contractual terms. Proposed financing is not the same as approved or available financing. Borrowing creates repayment dates and obligations that must also be considered in the less favourable scenario.
Distinguish results, forecasts and liquidity
The expected sale price, the contracted turnover, the receipts, the project margin and the result attributable to the individual investor are different metrics. An isolated percentage is insufficient: reference capital, period, inclusive costs, taxes considered and timing of distribution are required.
When reviewing a track record, ask which sales have been completed, which amounts have been collected and which costs remain to be incurred. When reviewing a forecast, verify the assumptions on price, quantity, timing and expenditure. Historical results do not guarantee future ones.
To assess the project’s resilience it is useful to compare the reference scenario with delay scenarios, higher costs and lower revenues, also combined. These scenarios are working assumptions, not promises of outcome. The decisive question is how the cash requirement changes and which decisions become necessary.
Governance, risks and exit
Before a commitment it is necessary to understand who decides, who controls costs, what information is provided, how often and which actions require participants’ consent. The promoter’s fees, appointments to related parties and potential conflicts of interest must be clear in the dossier and contracts.
The exit must be described concretely: sale of the asset, sale of the units, distributions arising from management or another contractual solution. An expected duration is not a guaranteed repayment date. Any limits on the transfer of the participation and the actual existence of a potential buyer must be verified.
Risks to be examined include authorisations, execution, costs, demand, counterparties, financing and liquidity. Currency exposure must also be examined when contributions, costs and receipts use different currencies. Each transaction can involve partial or total loss of capital; risk‑management measures do not eliminate it.
Organise a useful data room
The data room is an archive to be reviewed in phases. Each document should include a date, version, source and validation status. Any missing material must be indicated as such, with an assigned responsible person and a planned step to complete it.
- Identity and structure: parties involved, roles, signing authorities and contractual relationships.
- Asset and project: asset documents, surveys, studies, available authorisations and outstanding verifications.
- Economics and capital: cost plan, sources, cash flows, scenarios, participation conditions and fees.
- Execution and control: assignments, schedule, responsibilities, reporting and management of variations.
- Risks and exit: issues to resolve, conditions for proceeding, decision‑making rules and disinvestment scenarios.
Access to the documents must be agreed with the team according to the initiative and the authorisations. The presence of files in a restricted area does not, by itself, certify the quality or suitability of the investment.
Your discussion with MGM
MGM originates, structures and implements real‑estate initiatives in Cape Verde and assesses capital and partners appropriate to each transaction. Its contribution may include local knowledge, project development, operational coordination and agreed services. The actual scope must be defined by the agreements of the individual initiative.
For the first meeting, outline your objective, time horizon, experience, approximate resources and liquidity needs. This helps identify relevant questions and documents that can be shared. A request for information or an expression of interest does not constitute an investment or an allocation of shares.
You can explore the pathway on the Investments page and consult your legal, tax and financial advisers before committing.
General information guide, published by MGM Intelligence. It does not constitute an offer of financial instruments or personalised advice. Conditions, rights, risks and tax treatment depend on the transaction, the contracts and the recipient’s circumstances. The official sources cited provide contextual and procedural references; they do not certify or endorse MGM initiatives.