The Property Investment Market in Cape Verde

Past, Present & Future

The modern history of Cape Verde can date back to 1975, when independence was established from the Portuguese and their individual form of politics began. The country has suffered relative poverty similar to other near-by African nations, yet the independence gained through democratic elections began many changes that have lead Cape Verde into becoming a model nation for political and economical structure amongst the West African nations.

The government truly came into power in the early 90s, winning re-election in 1996, creating various reforms to the economy to solve issues with water and food shortages that had been a major problem throughout the country’s history. The country has relied heavily on funds from assisting country, especially Portugal, long relying on remittances from citizens who have moved abroad in an effort for survival. In present times there are approximately 500,000 Cape Verdeans living in foreign countries, a higher percentage to the actual internal population.

The decision in the past decade to create a tourism market, subsequently leading to a residential market aimed at overseas investors, has created a complete turn-around in the economy of the country. It was not long ago that Cape Verde was unheard of by many people across the globe, even though it was a tropical destination only 1 hour south of the Canary Islands, yet 2008 marked a significant year for the country in many respects.

Cape Verde became one of the top 10 destinations for holiday makers from the UK and interest in the real estate market has boomed. The economic situation of the country changed from being a low income country to a middle income nation. While some nations on the borderline of being considered as a middle income nation prefer to avoid the re-classification due to issues resulting from less foreign financial assistance, Cape Verde has realised its potential to continue growing and begin to support its own economy for future financial independence.

The future of the real estate market in Cape Verde offers various sound potentials. The year round climate offers no low seasons for buy-to-let investors, the close proximity to Europe, Africa and South America provides a greater potential of visitors for touristic purposes and the recent addition to the world map of holiday destinations ensures further success and interest amongst travellers.

All of the residential developments available for non-resident buyers are located within self-sufficient resorts, idealistic beach locations and direct flight opportunities with growing numbers of airlines. The current limited number of hotel accommodation and the growing preference for holiday makers to stay in self-catering accommodation, coupled with guaranteed rental schemes for buyers, assist with making the property market in high demand. The low density and strong restrictions in place for new developments ensure that the capital appreciation potential is high as the demand will always outstrip the supply.

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