Investment Property Cape Verde
Cape Verde Property Investment Research

Cape Verde Investment Key facts

1. Investment Area: Sal, Sao Vicente
2. Opportunity: Emerging market. Expected to be a major holiday destination in the future. Very reasonable entry prices and high capital growth and rental potential in the mid term.
3. Rental Potential: Yield : 8-12%
4. Finance: LTV: 70%
5. Term: Up to 15 Years
6. Political: Republic - Stable

Cape Verde: An outstanding Investment Potential.

Cape Verde Property offers a potential investor an amazing opportunity to invest early in a virgin property investment market. To the home-buyer or buyers looking for a holiday home, Cape Verde also called (Cabo Verde and Cape Verdi) offers the ability to purchase luxury property that may otherwise be beyond their financial means, to the property investor Cape Verde property is a prospect like no other.

Cape Vede property development is currently in its very early stages and now is the perfect time to invest in property on the Cape Verde Islands with property prices at a low and the signs are very positive that this market will grow at an incredible rate creating a new international tourist destination and bringing property prices to a level that is to be expected of such a destination.

Cape Verde Property - Existing Tourism A Positive Sign For Investors

Property investors who invest in emerging markets are looking to find a balance between investing early, purchasing property at the lowest possible prices and minimizing risk. With Cape Verde as is the case with many of the Worlds emerging markets, investment strategies generally are to invest early and as the area becomes established and demand for property and rental accommodation increases be perfectly positioned to make substantial gains.

Cape Verde Real Estate Market Growth Indicators - the New Canary islands

There are many market growth indicators that suggest that the demand for Cape Verde property is set to rise. Described as the "New Canary Islands" many experts have been predicting Cape Verde to be a major holiday destination for the UK and European markets. However with the inclusion of the Cape Verde Islands in the recent broadcast of BBC1's 'Holiday 2005' program the predictions are now beginning to become a certainty.

Currently travel times to Cape Verde from London are approximate 7 hours, as you have to travel via Lisbon, Portugal. However with the recent opening of the Cape Verde International Airport in Praia on the island of Santiago direct flights into Cape Verde from the UK are due to start from October 2006 and will take around 5.5 hours. Due to the explosion of tourism across Cape Verde, there will be massive demand for Cape Verde property, this will be in the way of holiday homes, rental accommodation and in addition retirement real estate. Channel 4 recently featured Cape Verde investment property on "A Place In The Sun" and it was shown to be the top place for property investment.

Cape Verde Property Investment Strategy

The Cape Verde investment strategy is simple. Purchasing a quality property in an excellent location at this moment in time when the islands are starting to develop into the huge tourist destination that has been predicted by so many experts.

Cape Verde investments offer very low price property at the beginning of a boom. Imagine buying a frontline beach apartment or villa in a popular established holiday destination like the Canary Islands 25 years ago before it was known to most.

The land and property prices would cost a fraction of what they do today. This is exactly what Cape Verde is offering. With a new international airport recently opened and UK direct scheduled flights from 2006 now is the time to invest in Cape Verde property.

Reasons Why Cape Verde Is An Intelligent Investment:

Investment Property Cape Verde - Natural

All year round excellent weather

1. Uk closest Tropical islands
2. Beautiful beaches, exotic tropical plantations and breathtaking mountains
3. Very low cost living offering affordable holidays
4. Flight times only 5.5 hrs from UK with little jet lag as it

Investment Property Cape Verde - Economic

Early stage of development in Cape Verde, ideal time to invest

1. Huge tourism growth potential
2. New International Airport and Cape Verde airlines to start direct flights from UK in 2006
3. Very strong public and private investment
4. Currently being re-classified as a "middle-income" country due to foreign investment in infrastructure and tourism
5. Strong possibility of inclusion in the European Union
6. Excellent property prices, Cape Verde beach apartments from €47,000
7. Exchange rate value of local currency is fixed to the Euro
8. A multi-party very stable democracy, supportive of foreign direct investment
9. Over 70% increase in property value over 24 months expected
10. Guaranteed rental schemes in place for up to 3 years

Don’t Take Our Word For It

Below are some extracts from the "Property Investor News" showing property investment in Cape Verde is gaining popularity.

Investment property in Cape Verde is currently one of the best locations worldwide to purchase property when looking for a good ROI. With the information above 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 here will almost certainly increase drastically.

Santiago island, which is situated in the Cape Verde Islands, just south of the Canaries is set to become the world's new luxury tourism destination.

With its all year round warmth and sunshine, the exotic Cape Verde Islands, is set to rival the Canaries tourism trade, thanks to the new international airport of Praia, which will begin operating direct flights from Europe in March. Flight times from London, Paris or Amsterdam, for instance will only be 5.5 hours.

"The opening of the new airport puts Santiago on course not only to become a popular tourist hub, but also to offer imaginative British property investors an excellent financial return, and a high-quality environment for their personal enjoyment", says Jonathan Grepne, Managing Director of a Cape Verde based development company."

Capitalise On The Potential Of Europe’s 1st Africa Based Holiday Destination.

If you are interested in investing in Cape Verde we suggest you operate quickly as some of the best priced developments are now 50% sold and as more and more people become aware of the potential for property investment in Cape Verde the prices will begin to rise. The real beauty of a Cape Verde investment now is that its such a new location with un-rivaled potential.

Cape Verde - Foreign Investment Policy

Cape Verde welcomes private foreign investment as a way to create a sustainable growing economy through job creation and capital investment and thereafter the collection of tax revenues. Legislation to entice external private investment into Cape Verde was introduced in 1989. The 'Lei de Investimento Externo' ('External Investment Law') introduced in 1993 broadened and enhanced the existing legislation to attract private foreign investment by non-Cape Verdean nationals and includes a 5-year initial tax holiday and a subsequent tax reduction by 50% on corporate tax (currently 30%) for the following 10 years.

These incentives can be extended indefinitely, so long as adequate re-investment is made. Regarding tourism investment, an exemption is granted on import duties for materials necessary for construction and installation of projects. All net revenues are guaranteed transference out of Cape Verde in full and foreign currency bank accounts are available.

Any dispute between the Government and foreign investors can be decided upon by a sole-arbitrator appointed by the 'Center for the Settlement of Investment Disputes' in Washington DC. Private foreign investors are entitled to residency in Cape Verde if they employ more than 13 nationals or invest more than approximately 35,000 Euros. "CABOVERDE INVESTIMENTOS" (which recently replaced Promex - the 'Center for the Promotion of Tourism, Investment and Exports') is a government agency that is officially the front desk for potential investors; the agency also approves projects and arranges further approval needed from the Government.

Cape Verde - National Development Plan

The government is implementing a whole series of programmes through its National Development Plan (NDP - 2001-2005) supported by Cape Verde's international donors to improve the infrastructures fundamental to the development of the archipelago into a quality tourism destination. Programmes under the NDP in areas such as transportation (air, maritime, inter-island and road transportation), communication, banking, health provision, electricity, water and sanitation provision and professional training are included under the NDP. A healthy tourism industry is seen as the main area for development, targeted by the government in its strategy for sustainable economic development.

Cape Verde - Tourism and Air Infrastructure

The new airport in Praia on Santiago island (operational July 2005) subject to official approval after safety checks by the CAA, will open a vital second international gateway to the Cape Verde islands from Europe and allow common aircraft such as the Airbus A310, A320, A319 and Boeing 767, 737 and 757. It’s the opening of this airport that is seen as the dawn of the bright future in tourism for the Cape Verde Islands and in turn boost ROI prospects for early property investors on the islands.

The Cape Verde national Airline TACV will operate routes from the UK (November 2006) and from Lisbon and Paris as soon as the airport is open. A further boost to investors is that there is an "Open Skies" policy allowing other airlines to fly to Cape Verde and forcing lower air fares through competition.

Its essential also that demand for the Cape Verde islands is created with through high class accommodation being offered and there are plans for a 150 room 5-star hotel in the centre of Praia and also a 135 room commercial hotel. Also existing hotels are upgrading and expanding to meet the demand the new air infrastructure will bring to the Islands.