Should You Invest?
Cape Verde offers good long term opportunities as the islands
develop into a mainstream tourist destination. However, success is
not yet guaranteed. The market is still in its infancy, both in
terms of property and as a tourist destination, thus it will take
some years for the country to become established in those terms and
start generating the returns that make it a solid investment. There
is a great amount of optimism invested in the country, with
realtors offering realistic gains of 15%-20%, and with so much high
end foreign investment being poured into the country – most notably
as luxury developments – it is not hard to foresee the huge
increase in popularity this small group of islands will be
- Cape Verde is expected to attract growing numbers of tourists
over the next few years
- Investors should also be encouraged by the stability of the
country's political and economic positioning.
- The American CIA sees Cape Verde as a country that 'continues
to exhibit one of Africa's most stable democratic governments and
the British foreign and commonwealth office believes Cape Verde to
have 'an efficient and generally un-corrupt bureaucracy'
- Investors need not worry about severe exchange rate risks as
the Cape Verde Escudo has been pegged to the Euro since January 4th
- Government has constructed several incentives for foreign
investors. For the initial 5 years, buyers enjoy a tax holiday as
well as an exemption on import duties for building materials.
- Private investors who invest more than £23,673 or employ in
excess of 13 nationals are entitled to residency.
Property in Cape Verde is becoming more and more appealing to
investors, not least thanks to the country's strong economy and
high tourist potential. The property boom is reliant on its
tourists and foreign investors but tourism levels in Cape Verde
have already risen by at least 25% per annum over the past four
years. The government has realised the country's potential and has
introduced new tax schemes for foreign investors and planned
a number of property developments as well as expanding Praia
airports to allow direct flights from the UK.
Cape Verde is still a very new market meaning prices are not
easily understood or easily generalised. At present then, there is
a somewhat turbulent market that is likely to stabilise and become
more logical in the future. In the meantime it is worth comparing
properties and prices carefully. Ideally you should work with a
reputable agent that has the capability to identify the best