Cape Verde Property

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Cape Verde is this year’s most talked about investment location. It’s drawing in more and more tourists every year; developers and investors are making a killing – the Irish in particular. Up until just a few years no one had even heard of Cape Verde or had any idea where it was.

Cape Verde (The Green Cape)
Cape Verde is a small African country located in the Atlantic Ocean off the west coast of Senegal (Africa). In some respects, it’s similar to Ireland – separated from the continent, alone in the middle of the Atlantic Ocean. Maybe this is why the Irish find it so appealing.

In terms of climate however, the two couldn’t be more different. Whereas in Ireland, it rains even when it’s sunny (which is never), Cape Verde is blessed with endless blue skies all throughout the year. This, more so than its Atlantic location, is probably the real attraction, along with the beaches and the affordable properties.

Temperatures range from a minimum nighttime average of 19°C in February to a maximum daytime average of 29°C from May to November. Cape Verde is on the same latitude as Barbados and is just a few degrees warmer than the Canaries.

Cape Verde is known for its amazing beaches – endless stretches of fine white sand with clean and clear warm blue waters all year round – a true beach lover’s paradise. It’s a land of fantastic contrasts; from its imposing volcanic peaks and lush green vegetation to its surreal lunar-like desert landscapes.

All the islands are vastly different from each other; each with its own landscape, climate, dialect, character and individual charm.

Sal, Santiago and Boa Vista is where most of the development is taking place at the moment. Sao Nicolau, Maio and Sao Vicente look set to follow.

An Investment in Paradise
Cape Verde is ideal for anyone looking for a pure investment. It’s still a virgin market with excellent potential both through property appreciation and buy-to-let investing.

For developers it’s like a blank canvas – plenty of quality locations to build and labour is very cheap. Investors and homebuyers can take advantage of the excellent value for money properties.

The Irish realized Cape Verde’s potential a few years back. Tom Sheehy, a furniture supplier from Cork, has been buying up plots and selling to mainly UK customers for a number of years now. There’s no shortage of buyers – he describes Cape Verde’s growth rate as simply “phenomenal”.

From an investment point of view, Cape Verde has much more to offer than the traditional tourist hot-spots like Spain, the Canaries, Portugal and France etc.

Cape Verde’s Rental Potential
Cape Verde’s future economic growth is heavily reliant on tourism. And with the number of visitors increasing by 25% over the past four years, the outlook looks very promising. The government is very keen to ensure these figures keep rising and are going out of their way to improve the islands’ infrastructure.

Cape Verde’s tourism industry drives the rental market and is the backbone for most buy-to-let investments. This is one of the major attractions for investors – the ability to gain rental income all year long.

Property Appreciation on the Islands
Some of the larger developments in Cape Verde have already increased in value by up to 30%. Property appreciation is the key to investment security and on Cape Verde it’s just about guaranteed.

The government aim to restrict construction in order to avoid the overdevelopment problems other holiday destinations, like Spain, now have. With a limited amount of properties for sale and a huge demand for them, investors can benefit from simple economics – demand exceeding supply = increase in property values.

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.

According to MacauHub, in 2006 Cape Verde’s economy grew by a staggering 10.8% – the highest rate in almost a decade. These figures have come as quite a shock – well more of a welcome surprise. The government had only expected an economic growth of between 6 and 7%.

Culture and Charm
Cape Verde is distinctly unique from the mainland. It has a culture and charm all of its own.

Unlike most of the countries in West Africa, where they mainly practice Islam and Animism (the belief that souls inhabit all or most objects), the majority of Cape Verdeans are Catholic Mestizos. Their attitude and outlook on life is often more European than African.

Located around 400 miles off the west coast of Senegal, this small archipelago has a landscape, climate, language and culture all of its own – it’s like nowhere else in Africa.

In the north they speak Crioulo and on the southern islands Krioulo. Both dialects are based on colonial-era Portuguese and often incorporate some English and West African words.

Each individual island varies dramatically from the other; with ferocious volcanic landscapes, bubbling with sulphur and fire, flat arid deserts and lush green forests.

Cape Verde is often referred to as the “Canary Islands without the cement mixers”. Many fear that it’s only a matter of time before overdevelopment, concrete jungles and Karaoke bars take over. Whether or not they will is hard to say.

Cape Verde is a fascinating country. It’s completely unique and almost impossible to categorize; a European -African – third world – emerging market – desert-like – volcanic – lush green country in the middle of nowhere! Intriguing yet bewildering, this is all part of its charm.

Cape Verde Versus UK
The opportunities to create wealth by investing in property are “much more extensive overseas than they are in the UK”, according to Paul Collins, overseas property editor of the BuyAssociation website.

High capital growth rates mean high returns on your purchase. In Cape Verde, You can make more money both through property appreciation and rental yields – by your property going up in value and/or buy renting it out.

Cape Verde’s economy and property market are developing at a much quicker pace than the UK, giving investors the opportunity to pocket capital and rental returns in a shorter period of time.

Property for Sale in Cape Verde
Here are a few examples of prices on Cape Verde…

Studio Apartment Property for sale in Santa Maria, Cape Verde
Type: Studio
Sale Type: Off Plan
Price: £ 45,449

Studio apartment property, Salinas Sand, Sal, Cape Verde
Type: Apartment/Condo
Sale Type: Off Plan
Price: £ 46,413
Local price: Esc 7,557,243

Studio Apartment Property on Sal Island, Cape Verde
Type: Studio
Sale Type: Off Plan
Price: £ 47,894

The future of Cape Verde
Labeled everything from the “new Canary Islands” to Barbados without the jetlag”, Cape Verde is this year’s most hyped-up locations.

The locals must be terribly confused. Once an impoverished third world country, then all of a sudden one of the most talked about investment locations south of the Canaries.

Crime levels have gone up, albeit minimally, from non-existent to low. There are concerns about the darker side which mass tourism often brings.

Overall though, most agree that the positive far outweighs the negative and that the impact of (perhaps) mass tourism on this poor nation will be ultimately be beneficial with increased employment, a thriving economy and a better standard of living.

When the investors and architects first arrived they had to convince the Cape Verdean government of the islands’ potential. One minister is reported to have said, “Why would they want to come here? All we have is sun and beaches”.

But this is exactly what sun-staved Europeans want – sun and beaches!

Once convinced, the government opened up their arms to European investors who helped transform the islands from a dusty windswept paradise into one of this year’s most promising and popular investment locations. Things have never looked better for Cape Verde.

The islands offer a lot more than just your typical fun-in-the-sun holiday destinations like the Costa del Sol or Greece. Cape Verde is distinctly African; bustling and colourful – full of exotic charm and intrigue.

The Cape Verde Islands
Cape Verde is an African country and former Portuguese colony located off the west coast of Senegal in the Atlantic Ocean. It’s made of ten tropical islands – home to some spectacular volcanic peaks, lush green vegetation and endless white sandy beaches.

It has a perfect year round climate, just slightly warmer and more consistent than the Canary Islands – their neighbours to the north.

The inhabitants are a mixture of African, Portuguese and Brazilian. Although Portuguese is the official language, most Cape Verdeans speak a local dialect known as Crioulo. Roman Catholicism is the predominant religion throughout the archipelago.

Cape Verde is often been described as “Barbados without the jetlag” by the estate agents and developers. And true enough; this is one of its biggest attractions. It’s just five-and-a-half hours (direct) from the UK. To fly to the Caribbean from the UK – you’re talking at least 12 hours.

Just within the last year, a new route has opened up from Gatwick and Manchester to Cape Verde. Astraeus Airlines fly direct once a week.

Why choose Cape Verde
Cape Verde is widely regarded as this year’s most lucrative emerging markets. Investors who buy in now will still be getting in early enough to reap the benefits of the sharp increase in property values which are literally guaranteed.

Both the local government and foreign developers are pumping money into Cape Verde’s infrastructure, boosting its already expanding tourist industry.

Cape Verde is politically stable with a very promising economic outlook. It’s technologically advanced and relatively crime free.

It’s been described as a “tropical paradise right on your doorstep”. Cape Verde’s close proximity to the UK (5 ½ hours) is one of its major attractions and selling points.

The climate is also a major factor. It remains hot, sunny and bright all year long in Cape Verde – perfect beach weather even in the in the middle of winter. Cape Verde’s climate is slightly hotter that the Canarian climate. With year round sunshine, Cape Verde is perfect for sun-worshipers and buy-to-let investors.

Investing in Paradise
It seems that everyone wants a piece of Cape Verde and after a price increase of 18% last year; they want it as soon as possible!

Things certainly have changed. In the beginning, it was mainly the big developers that wanted a piece of the action, often buying properties in bulk – sometimes 10 or more. Now, it’s just as likely to be a family looking to buy a holiday home where they can spend a couple of weeks in the winter and then rent out the rest of the year.

As of yet though, there doesn’t appear to be a big demand for permanent residency on the islands – not like the south of Spain or the Canary and Balearic Islands. This will no doubt change.

On Cape Verde, most of the new developments are still under construction; few are finished. Prices are still cheap. For an apartment, £30,000 is the roughly around the starting price. A six-bedroom villa with six bathrooms and a swimming pool can cost less than £350,000.

The Future of Cape Verde
Many people are wondering if Cape Verde will turn into a new version of the Canary Islands – with widespread mass tourism and endless development.

The scale and speed of development is already phenomenal, suggesting this to be inevitable.

It’s true, they’re getting busier and busier but for the moment, Cape Verde remains unspoilt, completely natural and bursting with indigenous local culture and charm.

A recent article by Robert Nurden (The Telegraph) looks at this year’s most attractive emerging market – the Cape Verde Islands.

“Why would they want to come here? All we have is sun and beaches.”

Apparently, the government believed that their tiny windswept archipelago had no appeal whatsoever to Europeans. No time was spared in convincing the ministry of development that the sun and sea was exactly what northern European’s wanted. Now the government is throwing its weight behind the schemes and welcoming European investors with open arms.

Retirement represents a chance for a new beginning – a chance to spend your golden years living life to the fullest. Traditionally, UK retirees opt to set up bars and restaurants in places like the Costa de Sol or open up guesthouses in France. Nowadays more and more people are heading further a field and choosing something considerably more challenging – in this case, Africa.

Background
Cape Verde is an African country; an archipelago of 10 inhabited islands, located 400 miles off the west coast Senegal. Frequently described as the “New Canary Islands”, Cape Verde has seen phenomenal growth within the past few years. The people living here are a dynamic mixture of African, Portuguese and Brazilian.

British developers are increasingly targeting UK and Irish buy-to-let investors, who along with the Italians have had a massive impact on the country’s property market.

Cape Verde is Europe’s closest tropical paradise. The pace of development increased dramatically last year when Astraeus Airline, started its direct flights from Gatwick and Manchester. They fly once a week and duration time is just five-and-a-half hours (direct).

Investing In Cape Verde
“Most buyers are interested in a holiday home to use themselves for a couple of weeks in the winter and rent out the rest of the time. But we don’t get many people wanting to live here permanently as they do in southern Spain.”, says Paul McMullen, of escapes2.com, from Manchester.

Initially, people were buying solely for investment reasons – often buying in bulk 10 apartments at a time but things have clearly changed.

There’s only really a handful of developments that are actually finished. Most are still being built. There’s no shortage of buyers and with a price increase of 18 per cent last year, they’re eager to get in quick.

Prices are still low. Apartments start off at as little as £30,000 – a lot cheaper than on Tenerife. For a six-bedroom villa with six bathrooms and a pool you’ll pay less than £350,000.

Most of the buyers and investors are from the UK and Ireland and tend to be more adventurous than investors in the Canaries.

There is a fear amongst some people that Cape Verde will soon become like their more touristy neighbours to the north – the Canaries. The scale of development is so great that it seems inevitable. It’s true, they are becoming busier but there’s nothing yet to compare with the larger tourist complexes in the Canary Islands.

Why Cape Verde
Cape Verde has been described as “Barbados without the jetlag”. This is one of the islands’ biggest attractions – its close proximity.

Cape Verde has a slightly better climate than the Canaries – it’s a few degrees hotter and a lot more consistent – making year-round rentals an attractive option for investors.

Another major advantage is that Cape Verde is still an emerging market. Buyers are getting in from the start and will therefore reap all the benefits from the sharp increase in property values. As the local infrastructure improves, these increases are literally guaranteed.

Cape Verde is politically stable and relatively crime free. It’s also largely efficient and technologically advanced.

Colonised by Portugal in the 15th Century, Cape Verde gained it’s independence in 1970 and has never looked back, and is now taking it’s place on the world property investment and holiday stage, and in particular Fractional Ownership. Fractional ownership is the new big thing!  Many homebuyers are finding that they do not have as much disposable income they used to have, but are still wanting to buy a property and Fractional ownership allows them to do this.
The 10 islands all have their own character and charm and all that is being coupled with modern developments with the emphasis on comfort and style. The Atlantic Property Group have been spreading the word about Fractional ownership in Cape Verde, just over an hour up the African coast.
In the Caribbean, the hot dry weather can lead to problems like tropical storms, Cape Verde  is spared that with just 10 days a year of rain. There used to be a problem with a lack of water but now new desalination plants are helping to recycle water from the sea. This is just one way that the new input of money from overseas investment can help to improve the lives of the friendly music loving people of the islands.
In the past the islands have relied on fishing and agriculture to sustain the economy but now they will benefit from the fruits of their temperate climate as it attracts visitors.
Not many people get a chance to invest in a new destination just before it is embraced by the wider public but in Cape Verde, the time to invest is now.

To read more about Fractional ownership and the AIP Property Group visit their website or blog

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As Cape Verde’s economy and tourist industry continues to grow, more and more developers and foreign investors are setting up here. With potential huge returns on investment, Cape Verde Property is big news.

According to the online newspaper, Business in Africa, “Cabo Verde was found to be the top new holiday destination for the UK tourist market”.

Cape Verde’s emerging real estate market is set to expand at a phenomenal rate. The three most popular islands are Sal, Santiago and Boa Vista.

Background – Cape Verde (Cabo Verde)
The Cape Verde islands are a group of ten idyllic tropical islands located off the west coast of Senegal (Africa), just one hour south of Spain’s Canary Islands.

They’re known for their lush green vegetation, spectacular mountain peaks and beautiful deserted beaches. These paradise islands offer an opportunity like no other to cut yourself off from the rest of the world.

Cape Verde has a warm, dry climate, with average annual temperatures that range from 68 °F (20 °C) to 77 °F (25 °C). It has the lowest temperatures of any West African country.

The official language of Cape Verde is Portuguese. But most Cape Verdeans speak the national language, Crioulo. Crioulo is a local dialect based on Portuguese and various African languages.

With a perfect year round warm climate (3 degrees warmer than the Canaries), excellent beaches and a stable economy, the Cape Verde Islands are well on their way to becoming the “new Canary Islands”.

Cape Verde’s emerging property Market
Up until recently, the islands have mainly attracted business investment from the UK and Ireland. Now, investors are coming from as far away as China.
According to local newspaper (A Semana) Chinese businessman David Chow intends to “invest potentially hundreds of millions of US dollars in the islands’ tourism industry”.

The surge in interest from the bigger players has had a positive influence on the many small investors, looking to buy property here.

Homebuyers, estate agents, investors and developers are now coming to realise the huge potential of Cabo Verde’s real estate market.

Why investors are choosing Cape Verde?
Cape Verde offers some very profitable investment opportunities. Compared to Spain and the Canary Islands, properties are still relatively cheap. Over the next few years, properties are expected to increase in value dramatically as the islands become more popular.

As Spain and the Canary Islands have become more and more saturated, investors have looking further south. With property still so cheap now is one of the best times to buy.

Cape Verde Property represents an excellent investment opportunity. Prices are still low and property vales are expected to increase dramatically. As well as being a top holiday destination, Cape Verde is widely regarded as the hottest investment area for 2007. All the major tour operators are now starting to invest heavily in this tropical paradise.

Cape Verde Buying Guide (Investment options & locations)
Two of the most popular investment options are off plan and buy to let.

Off Plan
With off plan investing you get your home when the price is at it’s lowest. Normally you’ll have to pay an initial deposit, followed by instalments at fixed dates until the project is completed. The advantage of this is that you only need a small mortgage.

When the development is finished you can either sell before taking the title deeds or rent it out on a short or long term basis.

Buy to let
In buy to let situation, you buy a property and rent it out as soon as possible. Ideally the rent should cover the cost of your mortgage and if you’ve planned it well, you might even have some money left over.

Popular locations Cape Verde
Sal is the most popular island for property investment, followed by Santiago and Boa Vista.

Sal (meaning “salt) Island is located around 460km from the West African coast and boasts all year round temperatures of between 22-27 degrees.

Many potential homebuyers and investors are now looking to Sal as it’s becoming one of the most fashionable resorts on the archipelago. It’s also home to an international airport with direct flights to Europe and the UK.

Santa Maria (on Sal) is now rapidly expanding and it’s predicted that in the future prices here will be at a premium.

The Cape Verde Islands
Located off the west coast of Africa, the archipelago consists of ten idyllic tropical islands, known for their spectacular mountain scenery and beautiful deserted beaches.

About 70 percent of Cape Verde’s people have mixed black African and Portuguese ancestry. Most of the rest of the people are black Africans. The official language of Cape Verde is Portuguese. But most Cape Verdeans speak the national language, Crioulo. Crioulo is a local dialect based on Portuguese and various African languages. Most Cape Verdeans are Roman Catholics.

Sao Tiago, the largest island, covers 383 square miles (991 square kilometres). Santo Antao is the second largest island, followed by Boa Vista, Fogo, Sao Nicolau, Maio, Sao Vicente, Sal, Brava, and Santa Luzia. Santa Luzia and the five islets are uninhabited.

Each of the islands has its own distinct natural character… from the volcanic Sao Nicolau to the diving paradise of Boa Vista. Santiago is often described as lush green paradise compared to Sal, (the “salt island”) which is a lot sandier.

Owning a Cape Verde Property
Cape Verde is an attractive alternative to the Caribbean. It has the same perfect climate and excellent beaches, yet it’s four hours less flying time.

Buying your own place here means owning your very own piece of tropical island with pristine white beaches, year round sunshine, endless charm and if you wish, significant rental potential.

In 2005 a new airport (IATA airport code: RAI, Praia) was opened in the capital Praia and from November 2006 there have been direct flights from UK airports. As competition between the carriers increases lower airfares are set to follow. If you’re thinking of investing in Cape Verde but aren’t too familiar with the islands, why not take an inspection visit and enjoy a holiday at the same time.

Private investors expect that the large island of Santiago, 200 kilometres southwest of Sal, will soon be opened to charter tourism. A huge tourism infrastructure is already being built outside Praia. The capital is now surrounded by large luxury hotels and beach resorts.

Just 14 kms northeast or Praia, the small village of São Francisco, is also set to receive large numbers of charter tourists. As the Sambala tourist village facilities come on line close to the airport, more and more flights will switch from the old Sal airport.

Up until recently, to get to the Cape Verde Islands from the UK you’d have to take up to three separate flights and the whole journey could take you up to 14 hours including waiting for connecting flights.

Now you can take direct flights from Amsterdam, Paris or Lisbon in around 8 hours and from the UK in under 6 hours.

There are flights to Sal Island from Lisbon every Wednesday, Saturday and Sunday and every Monday, Tuesday, Thursday and Friday into Santiago.

Amsterdam is the interchange point each Thursday and from Paris you can reach Sal every Monday.

New routes from the UK
Since November 2006 there have been direct flights to Praia, Santiago from Birmingham. This summer (2007) a second direct route to Cape Verde is to be launched.

The flights will go direct from London Gatwick to the island of Boa Vista once a week. It will take around 6 hours and cost around £377 including all taxes, fees and charges.

Alternatively, you can still fly though major European cities like Paris, Lisbon, Amsterdam, and Las Palmas and Gran Canaria. America is already linked by flights out of Boston, New York, Houston and Atlanta. These European and American flights land on the island of Sal.

There will be more and more flights between Praia and the UK over the next year or so. Soon, we might even see direct flights from Stansted, Leeds and Bristol.

The new Praia airport has made a huge difference to Cape Verde travel. It can handle bulk carriers like the Airbus 320 and Boeing 757 and 737 making it attractive to budget airlines, meaning cheaper flights for you!

The climate, beautiful scenery and wonderful beaches make Cape Verde one of the top tourist destinations for 2007. If you’re thinking of buying here, book an inspection visit and come and see for yourself!

Up to date flight information can be found at http://www.teletickettravel.com and www.tacv.cv