Investing in Land: A Cure for Inflation?

Land can bring exceptional returns without significant risk. In fact, land is an excellent hedge against inflation, which will protect the value of your savings.

There is no doubt that inflation cannot be avoided or ignored, as it is an inseparable consequence of the financial system. The state of the economy after the so-called Covid-19 pandemic, the security situation in Europe, and the energy instability of the EU lead rational investors to seek intelligent means of protection and investment growth. Diversification of assets into different industries is no longer sufficient and is certainly not self-sufficient. The desperate energy crisis, regardless of its causes, clearly shows us that when you invest in the same territory, investments can be equally threatened, even if they are carried out in different fields.

Most investment assets are vulnerable to inflation. While land generally maintains its value or even increases its real value with inflation, most other investment assets are vulnerable to its effects. The advantage is that the land is located in a different economic system, outside the influence of local threats.

An inflation-resistant portfolio includes land and other tangible assets that are not volatile. Here are several main reasons why land is one of the best assets you can add to your portfolio to protect against inflation:

Land is a tangible asset
Land is a finite, stable, and tangible investment asset. It cannot wear out or become worthless overnight. Land can be an effective hedge against inflation due to its potential to retain its value and generate higher returns.

Costs of Investment Management
Land is an asset that is easy to maintain, and therefore its ownership is inexpensive. Investment in land has less competition compared to its alternatives. Land is a long-term investment and provides peace of mind to its owner.

Land is a safe investment
Adding land to your portfolio can bring higher returns without significant risk. Investors can reduce the volatility of their portfolio and achieve good returns by adding land.

Exceptional Performance Over the Years
Depending on the parameters of the location and use of investment land, returns of hundreds of percent of the original investment can be achieved in a matter of years. Cape Verde is experiencing a tourist boom, development of demand for goods and services. Every year, more and more tourists and traders fly to Cape Verde with higher demands for service standards. All of this in a politically, religiously, and socially stable society. Annual returns of tens of percent from investments are not uncommon. These are the main reasons why we recommend and ensure investment in land in Cape Verde. If you are interested in more details, please feel free to contact us.