Located in the central Atlantic Ocean, Cape Verde consists of 10 volcanic islands and eight smaller islands, with an approximate population of 550,000 spread over nine islands in total. The small African nation was once known for problems in the property investment industry, with many foreigners looking to buy holiday homes let down by various disputes, long delays, and even incomplete projects.
This does, however, appear to be very much in the past, with the Cape Verde property market seemingly a completely different entity now, which is very much adding confidence to those interested in the country. If you are considering your next investment or simply have a keen interest in investing in Cape Verde, then take a look at our buying guide to help you to make the best decision.
Cape Verde as an Investment
Cape Verde has endured tough times in relation to their property market, but it has experienced a significant increase in its interest recently, making its mark as a very interesting place for global investors to consider. All investments in Cape Verde are made in Escudo, the local currency, whilst returns are paid in GBP – despite the fact that it is an ex-Portuguese colony and operates largely with Euros.
Along with a now stable democracy, Cape Verde has been transformed into a place that is welcoming investments from overseas investors, keeping in mind that tourism makes up for a quarter of their GDP. Investment from overseas buyers is welcomed in order to strengthen the economy and increase economic growth, which will in turn help to develop the country as a whole.
Cape Verde Investment Locations
With two groups of islands to consider, there are many parts of Cape Verde that provide strong investment opportunities. Property prices range from approximately £80,000 for apartments to £250,000 for villas, whilst Cape Verde is the perfect place to work on a summer project by improving properties that may be slightly run down.
One group of islands is the Barlavento Islands, which consists of seven islands, with Sal being the most popular for property investment. Visitors to Sal are drawn to the island by the stunning beaches, with an array of restaurants and bars making it not only a fantastic place to visit, but also a great place to invest. Boa Vista is also a popular place for investing, with 55km of white sandy beaches and a whole variety of self-contained resorts for foreign investors to take advantage of, as well as a new international airport. Finally, the capital island of Cape Verde, Santiago, is also another very good place for investing in property, offering an African culture, colonial architecture and a rich mountainous rainforest.
Tourism in Cape Verde
As previously mentioned, tourism in Cape Verde accounts for a quarter of the nation’s GDP, and so it is clear to see that it is an extremely popular place for people to visit. With beautiful beaches, great weather, low crime rates and luxury properties to enjoy, tourists continue to return to the nation to enjoy everything that it has to offer. Some of Europe’s top countries, including France, Germany, Portugal and the UK account for half of Cape Verde’s tourism, suggesting that it may well be a destination that investors can truly capitalise on, especially when you consider that the number of tourists has tripled to more than 500,000 people between 2003 and 2015.
Investments Aided by the Cape Verde Government
In order to encourage investment from overseas investors, the Cabo Verde Trade Invest scheme has been backed by the government, aiming to promote investments. Not only will this make it much easier for investors to identify investment opportunities, but it also makes the whole process easier in the long run. The government is working hard to increase investments from overseas investors, with more simple processes put into place, as well as blanket obligations to residents and foreign investors. As the government is working so hard, investors from all around the world are becoming more confident in the nation as an investment location, benefiting both parties significantly.
Peter Scully is an online marketing consultant for Hopwood House, a specialist property investment firm with a wide range of investment opportunities throughout the globe, including properties for sale in Cape Verde, Dubai, Spain, Portugal, and the UK.