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Page 1 of 2  As the closest tropical islands to Europe with stunning white sandy beaches and clear turquoise warm water, it is not surprising that Cape Verde was one of Channel 4's “20 Best Places to Buy in the Sun”, while the BBC's Holiday programme described it as, “the next potential holiday hotspot”. With the Cape Verde government investing heavily in infrastructure and tourism as their top priority, opportunities for the discerning overseas property investor are there for the taking.
Cape Verde's tourist industry is growing rapidly, increasing by 12.7% between 2000 and 2003, and 15.6% between 2004 and 2007, according to the Millennium Institute, and this growth looks set to continue. A statement released late last year by government spokeswoman Cristina Fontes Lima, said the number of tourist arrivals from 2006 were set to increase at an annual rate of 22% (Source: Arfol News), while some projections suggest that by 2015 as many as 1,000,000 tourists will be visiting the islands each year, forecast National Statistics Institute (INE). Cleary this demand will fuel a booming real estate industry with a wide range of projects available to foreign investors.
According to Maitland MacFarlan of the International Monetary Fund (IMF) Cape Verde's economic and policy performance "remains sound"; a confidence reflected in the Bank of
Cape Verde's tourist industry is growing rapidly, increasing by 12.7% between 2000 and 2003, and 15.6% between 2004 and 2007, according to the Millennium Institute
Cape Verde's semester report, which showed Gross Domestic Product (GDP) growth in 2006 to be higher than expected, at around 6.5%. The IMF predicts growth in 2007 to stand at around 7% and stated that given the large investment projects in the pipeline, the economic outlook is promising. The IMF report concluded that Cape Verde's strong economic growth had been mainly supported by “strong public and private investment, together with a sharp pickup in tourist arrivals.” (Source: Afrol news).
Having all the qualities of earlier boom markets such as Spain, Turkey, and South Africa, many estate agents are predicting that Cape Verde is set to become the world's next property hot-spot. For example, the British journal ‘Property Investor News' recently praised Cape Verde as being “one of the best locations worldwide to purchase property”, and where the potential for a strong return was “clear to see”. The magazine confidently predicts that “as soon as Cape Verde becomes a mainstream holiday destination the price of property here will almost certainly increase drastically.”
Investors can enter at either end of the market. Many are buying properties directly, either as straightforward buy-to-let or as holiday homes which can then be let out when not in use. With year round sunshine and no low season rental it is possible to earn a reliable stream of regular income. Many house buyers are choosing off-plan projects, with Sal currently proving the most popular. However, with the opening of international airports on Boa Vista, Santiago, and San Vicente, it is expected that demand and growth of the property market is likely to expand into these areas over the long-term.
At the other end of the market, there are many larger-scale projects to invest in, such as the extensive luxury resort developments currently under construction.
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