Cape Verde is an exciting emerging property investment market set to become a top high-end destination in the next few years Until recently a relatively unknown location, Cape Verde is rapidly growing in popularity and is a top 10 holiday destination for British tourists. The economy is developing rapidly, with tourism a strong focus of the government. Cape Verde is one of Africa's most stable democracies and only a short flight from the UK The property market in Cape Verde is still in its infancy so prices are still attractively low with rises due imminently. However, being such a young market there is little market history and risks are more of a real concern. High gains are expected, especially with the rapid expansion of the tourist market.

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 beseeming. 

     
  • Cape Verde is expected to attract growing numbers of tourists over the next few years
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  • Investors should also be encouraged by the stability of the country's political and economic positioning.
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  • 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'
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  • Investors need not worry about severe exchange rate risks as the Cape Verde Escudo has been pegged to the Euro since January 4th1999.
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  • 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.
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  • Private investors who invest more than £23,673 or employ in excess of 13 nationals are entitled to residency.

About half of the 482,000 population live in the biggest island, Santiago, which is home to the capital city, Praia. However, tourism is largely concentrated in the island of Sal, which has the country’s only international airport capable of receiving charter flights from Europe. New and bigger international airports are scheduled to be opened in Santiago, San Vicente, and Boa Vista.New developments are rising in almost every major island in anticipation of the boom. Capital values are rising by 10% to 15% annually. Yet property in Cape Verde is still a bargain at around €1,200 to €1,650 per sq. m.

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.

Remember: 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 opportunities.