Over the last year, Cape Verde has gained wide recognition as being one of the most dynamic emerging property markets in the world.

It now offers investors the opportunity to buy land and quality property in a prime location at relatively affordable prices. An increase in tourist numbers and an improved infrastructure has seen property values rise along with the general economy of the islands. There's no doubt that this is good news for investors who enter the market early.

 

What the experts say about Cape Verde

Property Investor News:

"Investment Property in Cape Verde is currently one of the best locations worldwide to buy property when looking for a good ROI (Return on Investment).  It’s clear to see the potential of these islands and as soon as Cape Verde becomes a mainstream holiday destination the price of property there will almost certainly increase drastically."

Expedia.co.uk:

A survey conducted by Expedia, one of the largest web based holiday companies, recently declared Cape Verde the number one destination for British tourists this year.  Elyas Chowdhury, marketing director of Expedia.co.uk observed, "Our customers prefer to head off the beaten track rather than continue to go back to traditional tourist hot spots".

He also said "all-year-round sunshine, white beaches and the Creole culture had helped to make Cape Verde the top location for Britain's most jet-setting tourists."

A Place in the Sun:

Cape Verde was featured on 'A Place In the Sun' as the top property investment location of 2005/2006.

 

Reasons to invest

• The closest tropical islands to Europe
• Low cost of living and affordable holidays
• Exchange rate value of local currency is fixed to the Euro
• Stable, multi-party democracy, supportive of foreign direct investment.
• Cape Verde's minister for the Economy, Growth and Competition, José Brito is hopeful that the country could join the World Trade Organization (WTO) in 2007. (MacauHub)
• Figures from Cape Verde's National Statistics Institute (Macauhub), show that Cape Verde's hotels welcomed 233,000 tourists in 2006, 26.4 per cent more than during 2005.
• The Directorate-General for Tourism Development in Cape Verde has drawn up measures to create a Code of Conduct to establish sustainable tourism. The Code of Conduct will define objectives for managing resources and establishing competitiveness within the tourism sector. Included in these proposals are measures for saving and re-using water, managing power resources, implementing renewable energy as well as optimising environmental resources and waste treatment methods.
• The real growth rate of GDP was 5.5% in 2005 (CIA Factbook)
• International flights to the Cape Verde Islands have increased and extra weekly flights, from Germany, Great Britain and Denmark have been confirmed by Hapagfly, Thompsonfly and Startour.
• Direct flights from more UK airports are expected by spring 2007 and from Ireland in the summer. Regular flights depart from London, Birmingham and Manchester already.
• Cape Verde is five and a half hours journey time from the UK and approximately six hours from Ireland
• The government is implementing a series of programmes, through its National Development Plan (NDP - 2001-2005), to improve the infrastructure necessary for the development of Cape Verde into a quality tourism destination. These programmes cover transportation, communications, banking, health provision, electricity, water and sanitation provision and professional training.
• There are plans for a 150 room 5-star hotel in the centre of Praia as well as a 135 room commercial hotel. Existing hotels are upgrading and expanding to meet the demand which the availability of air travel will bring to the Islands.

 

The Economy

Cape Verde has a stable, democratic government with an elected president as head of state, a prime minister nominated by the National Assembly (the national legislative body) as head of government and elected members of the National Assembly.  The judicial system is comprised of numerous courts, culminating in a Supreme Court.

Cape Verde has enjoyed steady if low level development, mainly focused on services (including a developing shipping sector) and tourism. On the UNDP Human Development Index, it was ranked 105 out of 177 countries. More Cape Verdeans live outside the islands than in the country. The country therefore benefits from remittances from expatriate workers, which total an estimated 10% of the national economy. The majority of the active population is engaged in agriculture, but Cape Verde is arid and prone to droughts. As a result it suffers periodic food shortages and has to receive food aid.

Cape Verde has an efficient and generally uncorrupt bureaucracy. The economy has been generally well managed. Relations with aid donors are good. The main aid donors are the EU and the World Bank. Aid funds are concentrated on poverty alleviation and infrastructure, especially water provision.

Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy.  Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism and the momentum of the governments development programme.  Cape Verde has been exploring European Union membership in recent years.