Invest in a tasty slice of Madeira property

Madeira property developer, Morgan Forbes, has announced plans to launch the third phase of its latest Madeira property scheme, Ponto do Pargo Resort, featuring 68 apart-hotel units, available on a shared ownership basis.

Investors can currently buy an equity stake in Ponta do Pargo for a deposit of £5,750, with a total investment of just £15,620, payable over three years.

But with market sentiment improving, Morgan Forbes is urging investors to act now and buy into the luxury scheme as the new home developer plans to raise prices by as much as 10% before Christmas.

Michael Nascimento, director of Morgan Forbes, says that the hike in price reflects the fact that demand for property in Madeira, located in the mid-Atlantic Ocean, is growing.

Ponto do Pargo Resort will be built adjacent to the new Sir Nick Faldo designed 27-hole golf course, which recently received planning consent. Madeira’s year-round warm climate is ideal for golfers and those people seeking accommodation on or near a top golf resort.

Property prices in the Ponta do Pargo region of the island are expected to strengthen over the next few years, on the back of the decision to give the golf scheme the green light.

Around 20% of the Ponta do Pargo Resort project has already been reserved, despite the fact that construction work on the scheme has not yet got underway.

Nascimento reports that based on an average occupancy rate of 64% in the local area, the Ponta do Pargo Resort project is expected to yield an annual rental return of up to 11%.

Additionally, investors buying during the off-plan stage will benefit from any growth in value during construction, and will also be entitled to a 0.1% share of any future sale of the resort, which has been valued at £37 million.