Investment & ROI

Rental Yield in Cape Verde: How Much Can You Earn in Sal Island?

Discover realistic rental returns across Cape Verde, with a focus on Sal Island and insights on Boa Vista, Santiago, and Maio.

If you are evaluating rental yield in Cape Verde, the first thing to understand is that returns can vary depending on the island.

While Sal Island currently offers the strongest short-term rental performance, other islands such as Boa Vista, Santiago, and Maio are also attracting investor attention for different reasons.

1. Rental Yield by Island

• 🏝 Sal Island – highest demand, strongest Airbnb performance
• 🌊 Boa Vista – growing tourism, increasing investment interest
• 🏙 Santiago – more local market, stable long-term rentals
• 🌅 Maio – emerging market, lower prices, long-term potential

Each island offers a different strategy: cash flow, stability, or early-stage growth.

2. Short-Term Rentals in Sal Island

Sal Island remains the strongest market for short-term rentals in Cape Verde.

• Average nightly rate: €50 – €120
• High season occupancy: 70% – 90%
• Annual occupancy: 55% – 75%

Areas like Santa Maria lead the market, followed by growing zones such as Murdeira.

3. Best Areas Within Sal Island

• 📍 Santa Maria – strongest demand, highest returns
• 🏝 Murdeira – quieter, growing mid-term value
• 🏙 Espargos – local demand, long-term stability
• 📈 Palmeira – lower entry prices, emerging investment zone

The right choice depends on your investment strategy and budget.

4. Example ROI Calculation

• Property price: €120,000
• Average nightly rate: €80
• Occupancy: 65%
• Annual gross income: ~€18,900

Net returns can range between 7% and 10% depending on management and costs.

5. Is Cape Verde a High-Yield Market?

Compared to many European destinations, Cape Verde still offers:

• Lower entry prices
• Growing tourism
• Strong rental demand (especially in Sal and Boa Vista)