Around 400 miles from Africa's west coast, Cape Verde is an area of 10 small islands in the North Atlantic Ocean. The islands already have tourism on the islands and due to plans to promote the area internationally as a tourist destination, tourism population are predicted to rise over the next few years. As the islands gain in popularity with tourists, they are increasingly seen as a promising property investment.
The summer months of July and October are an ideal visit the islands as the weather is warm and the winds are milder. The interesting mix of Portuguese traditions, African scenery and European architecture provide a uniqueness that will appeal to all types of travelers. The wonderful scenery is different on each island with some flat and desert-like while others are volcanic and mountainous; all of them offer magnificent coastlines.
The biggest and most popular island in Cape Verde is Santiago; it also has the main airport in the capital city of Praia. Nearly 50% of the area's populace inhabits this island and there is a vibrant atmosphere. Praia, being the capital city is located on the island and has scenery made up of mountains and deep valleys with a beautiful coastline of white sand beaches and black reefs.
Around the island are numerous diving opportunities including exploring shipwrecks on the ocean floor, and the winds are perfect for windsurfing activities. The local people love their music and the islands hold many carnivals, live music venues can easily be found and folk music is a proud tradition.
If you do visit the islands don't miss the salt mines in Sal, located inside a dormant volcano they are a must for every visitor. Fogo is a single volcanic peak whose slopes are marked with rivers of frozen lava and the beaches of Sal and Boa Vista are spectacular. There are plenty of water activities including surfing, water-skiing and scuba diving, these can easily be booked at your hotel and then relax on the beach with a bottle of the local rum.
Airlines have already established direct flights to Cape Verde from Europe, opening up the islands to international travelers which will assist its progression as a tourist destination and make the area an attractive choice for real estate investments.
Due to the islands natural beauty, friendly people and expected rising economy, the islands are attracting more and more interest from investors. Interest is being shown from all types of investors, including corporations looking for a new area to develop, business people in search of new opportunities and those wanting a holiday or second home. You will find inexpensive flights from Europe and once you are there, it's hard not to fall in love with the islands.
Anyone looking to invest in a foreign country should really visit there themselves to experience it firsthand. Only you know what you require concerning climate, opportunities and people and taking the time to travel there will answer many of your questions. Once you have paid a visit and decide that it would be a good place to invest in then take a second trip and learn the business practices of the country, they will probably not be the same as in your home-country. If you are planning on running a business there be aware that business practices will be different than they are at home and learn their customs so as not to make mistakes.
If you compare Cape Verde to the rest of Europe properties are inexpensive, you can even find beach front properties still realistically priced. This gives investors the opportunity to establish a new business on the islands in expectation of the increase in tourism levels. Currently the islands are not set up for thousands of tourists and the opportunities are there for the picking. When you consider the low airfares, direct flights to the islands and the spectacular landscape on offer, it is obvious why Cape Verde Property Investments would be an excellent choice for individuals and corporations.
A former Portuguese colony in the Atlantic Ocean off the coast of Africa, Cape Verde is an archipelago of islands that has come quite late to the property scene. Until a couple of years ago they were almost unheard of, and even now they are really only recognisable to the savvy overseas investor and a few intrepid travellers. But a new property haven is already under construction and it is demanding attention from early investors with long-term vision.
Cape Verde has been compared with the Canary Islands, its neighbour in the Macaronesian island chains of the Atlantic Ocean; as well as the Caribbean islands, with which it shares roughly the same latitude. Both accolades are substantial endorsements of the emerging destination, and deserved because of the low rainfall and year-round temperate weather that allows beachfront enjoyment most of the year.
Prospects for the property market are looking particularly enticing with double-digit capital appreciation forecast for the next year. Adrian Lillywhite of Cape Verde Property sees a 15 to 20 per cent rise in 2008, ?particularly in the better locations and as the infrastructure improves.? Carley Todd, GEM Estates' Cape Verde expert thinks 30 per cent is not an unreasonable estimate of price rises in the next year, having risen by around that much in 2007.
Steve Worboys, director of Experience International believes that, if the recent boom in tourism is anything to go by, Cape Verde has an extremely positive future. ?In 2006 there was a rise in tourists by over 25 per cent, and the National Statistics Institute (INE) has forecast around one million tourists annually by 2015." The rising number of tourists can only be an asset to property owners, who can turn a rental penny, although it is still too early to get a clear prediction of rental returns.
Carley Todd adds: "Hotels in Sal have 92 per cent occupancy and holiday companies will need 400 rooms extra per week to deal with the demand. We can't guarantee any figures but it is looking very good and by the time developments come to completion rental yields are expected to be phenomenal."
If you are after a definite rental yield, Cape Verde property specialist TOPA is offering a leaseback option through developer Tecnicil, at the Vila Verde development on the island of Sal. The option includes a net annual rental return of five per cent over two years if the property unit is available to the management company 48 weeks per year. If you want to use your property more than that, the return will be pro-rated according to the usage rate.
Although not the largest or most populated island, Sal is streets ahead at attracting tourists and property development, luring Brits with direct flights from the UK from both Manchester and Gatwick airports. The main tourist town on the island, Santa Maria, is the furthest along the development route, with completion dates now in sight and more infrastructure than you can expect on the other islands (although even this is still some way from the standards of second-home destinations in Western Europe). Adrian Lillywhite says of the island: ?The natural beaches are stunning and the area is quickly developing. There are now some excellent high-quality developments and plans for four golf courses and three marinas on the island.?
Dunas Beach resort is a short stroll from the centre of Santa Maria and will be built on the front- and second-line to Ponta Preta beach, with a golf course planned for further along the development schedule. Apartments start from (?62,000) and detached villas from ?299,950 (?226,000), through Experience International.
The Cotton Bay Marina & Golf Resort is being developed on the west coast of Sal island with a range of properties and hotels complemented by a 300-berth marina and two 18-hole golf courses. Billed as an eco-compatible resort, there will be green zones and a park as well as a sports centre with football fields, swimming pools and tennis courts. The first phase is due for completion in 2009 and the marina and golf course around 2010. Prices start from ?126,000 (?95,000) euros for a one-bedroom apartment to ?1.26 million (?950,000) for a fron-tline villa through GEM Estates.
TOPA is selling apartments and villas at the Pedra de Lume Golf and Marina resort on Sal from ?85,000 (?64,000) or front-line apartments at Paradise Beach with adjacent golf course from ?160,000 (?121,000).
Boa Vista is being touted as the next Cape Verde island hotspot, although right now you'll have to imagine the luxurious new villa-complexes being sold off-plan along the sand beaches because this is very much the beginning of the property development road. With a brand new international airport just opened, charter flights from London have recently started, which will kick-start the anticipated tourist boom. The Sabi Sands resort in Rochinha is one of the many new-build developments for sale on the island.. Situated 300 metres from the beach, the resort will include apartments, townhouses and villas, two swimming pools and a restaurant. There is also a five per cent rental guarantee offer for two years and prices start from ?91,828 (?69,000) for a studio apartment through Cape Verde Property Ltd. Alternatively, the company is also selling studios in Casa Boteto on Estoril Beach from ?45,800 (?34,500) or a two-bedroom penthouse in Por do Sol on the front-line of Cabral Beach for ?160,000 (?121,000).
Sal and Boa Vista are part of the drier eastern islands of the archipelago, while the other up-and-coming development hotspots of Sao Vicente and Santiago tend to be greener and more mountainous but with fewer beaches. Santiago hosts the country's capital at Praia and is home to around half the population of Cape Verde. The dearth of beaches hasn't limited the development of the island, which benefits from an international airport at Praia and direct flights to the UK. Despite fewer miles of sand, Adrian Lillywhite says the beach at Sao Francisco is good and points to a new development called Sunrise Beach that will launch shortly right on Sao Francisco beach, with prices for a two-bedroom apartment from ?150,000 (?113,000).
The island of Sao Vicente is the cultural heartland of the country and its main port town of Mindelo boasts the birthplace of Cape Verde's world-renowned singer Cesaria Evora. Outside of Mindelo the island is still relatively undeveloped, but with yet another new international airport opening up in the next year, the property developers have already begun to stake their lots on the island. TOPA is selling apartments and villas at the Fortim Mindelo beachfront development from ?335,000 (?253,000). Alternatively, the Boat House, being built on the Baia das Gatas coastline, offers properties, most with sea views, from ?235,000 (?177,000), also through TOPA. For something with a bit of history, Cape Verde Property is selling a five- or six-bedroom colonial house with views over Mindelo Bay, which is in need of some renovation and is for sale for ?525,000 (?396,000).
Because of the property market's infancy, getting non-resident finance for off-plan properties can be difficult, although there are some products slowly coming to the market. International Mortgage Solutions offers a range of mortgage products through a Portuguese and Cape Verdean bank, which include stage-payment bridging loans for off-plan purchases. The process of buying is similar to the continental system using notaries, and government tax and legal costs add around six per cent to the purchase price. In an emerging market like Cape Verde it is imperative to use a good English-speaking solicitor and it is also better to visit the islands to fully understand where and what you are buying.
Both Michiel Van Kets & Kathy Sandler are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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