Cape Verde & Investing in the Cape Verde Islands & Latest News 31 Oct 2007 04:04 am
From Cork to Cape Verde
Cape Verde is one of today’s most rapidly emerging property markets. A few years ago it was completely unheard of. Nobody even new where this small Atlantic archipelago was on the atlas – now it’s one of the hottest hot spots on any investors map.
It’s attracting developers, investors and homebuyers from all across the globe – from Ireland in particular.
The Cape Verde Islands
Located off the west coast of Africa, Cape Verde shares a relatively similar geographical position to the Emerald Isle – the middle of the Atlantic Ocean, at the very edge of the continent. Maybe this is part of the appeal for the Irish.
The Cape Verde archipelago is made up of ten main islands and five islets. The main islands are Santiago (the largest island), Santo Antao (the second largest), Boa Vista, Fogo, Sao Nicolau, Maio, Sao Vicente, Sal, Brava, and Santa Luzia – which is an uninhabited nature reserve.
Cape Verde gained independence from Portugal in 1975 and has been a pluralist democracy since 1990. Around half of the country’s population is located on Santiago (Sao Tiago) home to Cape Verde’s administrative capital – Praia.
Cape Verde is known for it’s stunning beaches, crystal clear waters, dramatic volcanic landscapes and year round sunshine. As well as an excellent year round climate and amazing beaches, each of the Cape Verde Islands has its own individual attractions.
So far, most of the new developments can be found on the islands of Santiago, Boa Vista and Sal. Sao Nicolau, Maio and Sao Vicente look likely to be next.
Investing in Cape Verde
Cape Verde is essentially a virgin new-build property market – ideal for pure investors. It offers exceptional value for money when compared to older more established tourist destinations, like Spain, France, Greece etc.
Over the past four years, tourism has risen by 25%. Dominic McGlynn of Sambala Developments states “The government transparently acknowledges that the islands’ future lies in tourism and is committed towards the provision of infrastructure to ensure that annual tourism figures double to over 500,000 by 2015”.
Buy-to-let Investments on Cape Verde
These can be a very lucrative option. Tourism drives the rental market, which benefits from the year-round sunshine; meaning promising rental yields all year long.
In Cape Verde you can maximise on rental yields. The promise of good rental yields is a key factor for investors. It assures them of Cape Verde’s solidity as a profitable investment location. With a year round holiday season, investors can rest assured that their property will rarely be left empty.
Property Appreciation
The other key to investment security – property appreciation (your house going up in value).
The Cape Verdean government plan to limit the construction of new developments on the islands so that they won’t become overdeveloped like some markets are experiencing at the moment.
They intend to “permit only low-rise development and to promote eco-tourism and its own lively Creole culture”, according to Maria Rosario de Luz, the adviser to Cape Verde’s minister for economic growth.
With such a high demand for properties and such a small supply, investors can benefit greatly from basic economic principles – demand exceeding supply.
The Irish
So far, most of the investors and homebuyers have been the Irish, who nowadays can be found in any lucrative emerging market. Although still quite inaccessible, the islands seem have great appeal.
The British too, have long been interested in Cape Verde and more recently, Germans and other investors from the Nordic regions have taken note.
Along with the Irish, there’s a growing mass of other Northern Europeans piling into Cape Verde. For people who have already purchased this is very reassuring. For anyone who’s considering investing this would suggest that now’s the best time to do so.
Conclusion
The positive indicators are there. Although not as easily accessible as Spain, the Mediterranean or Eastern Europe, Cape Verde has a lot going for it – the sun, beaches, good value property, low cost of living, high standard of life, cheap labour, excellent rental potential and a very relaxed pace of life.
Whether it’s for lifestyle or investment purposes, this tiny windswept archipelago in the middle of nowhere looks set to be attracting Irish buyers for a long time to come.