Where Should You Invest in Property in Cape Verde?

The archipelago of ten north Atlantic islands and eight islets lying off the west coast of Africa that make up the Republic of Cape Verde now have an awful lot more to offer the tourist or holiday home hunter thanks to continued and considerable investment that’s being poured into the Republic to make it a desirable place to live, work, retire or holiday.

As a number of the islands are benefiting from foreign direct investment and because money is being spread across Cape Verde on infrastructure and amenity improvement, where should you invest in property in Cape Verde to get the most cost effective and high returning property in this stunning sunshine location?  Well, we take a look at the three most popular locations with second home hunters so that you can decide where you want to invest your cash.

In the northern island group known as Barlavento there are Sal and Boa Vista which are two of the main locations to consider for property investment in Cape Verde; and in Sotavento which is the southern island group there’s Santiago, this is the largest of all the islands and it’s also home to the Republic’s capital of Praia…these are the three islands worth considering at the moment if you’re looking for either an income producing property purchase or the chance to buy off plan at pre-construction prices before being able to resell and realize capital appreciation after the property in question has been completed.

Starting with Sal, which means salt in Portuguese, this is a sandy island blessed with stunning white, soft sandy beaches, beautiful clear waters, plenty of fishing and diving opportunities and it’s also the oldest of all the islands and the most developed in terms of tourism appeal.  About 50% of all tourism interest in Cape Verde is centered on this single island alone - in part because it is just so beautiful and naturally blessed, and in part because it is home to an international airport meaning it is extremely accessible.

Currently there are plans in place to develop two new golf courses on the island with Nick Faldo and Ernie Els giving their signatures to these world class courses and the adjoining residential and leisure resorts.  Locally among property experts it’s thought the addition of these courses alone will push up both the appeal of the island of Sal as well as local property prices.

Brand new large developments of villas and apartments are in the planning or construction stages on Sal…all come with a range of leisure features and amenities onsite and they offer a buyer the chance to buy now and resell upon completion or buy now and get a guaranteed rental income as a number of tour operators have tied in to some developments and guaranteed that they will take on a certain percentage of properties for their tourism client base.  These are opportunities worth looking at as a property investor interested in Cape Verde.

Boa Vista is the second location to consider – the name means beautiful view and there are certainly many, many beautiful views to behold on this, the most easterly of the islands in Cape Verde.  Again the beaches are pure white sand but the difference between Boa Vista and Sal is that it is less developed at the moment…this appeals to some people who are looking for a slightly less sophisticated and perfect resort, who want to experience more of the local culture and who are happy to wait for modernization to reach them.  From a property investor’s point of view, Boa Vista may well represent even longer term opportunity…if you buy now you can buy very low indeed and enjoy a steady period of price and rental yield appreciation.

The final alternative for those who are looking to buy property in Cape Verde as an investment asset is to travel to Santiago.  As mentioned this is the largest island and home to the capital of Cape Verde and it is also geographically different to the other two locations.  While it does have some sandy beaches it also has stunning mountains and of course the lively city of Praia - actually Praia is more like a large and lively bustling town than a major capital city despite being home to many embassies, some great restaurants and the best shopping in Cape Verde.

Santiago is home to another international airport, it is also the most inhabited of the islands in Cape Verde and the second most important tourism hotspot.  All of these ingredients naturally add up to the fact that it is potentially one of the most exciting locations for an investor to consider.  It has rental potential from not just the tourism industry but also from the local and professional classes in and around Praia, and there are commercial as well as residential property investment opportunities on the island of Santiago as well.  This means an investor can diversify their investment approach in Cape Verde.

So, to answer the question posed by this article namely ‘where should you invest in property in Cape Verde?’ – as you can see there is a great deal of choice and really you need to travel for a holiday and a viewing trip to the archipelago and check out everything that’s on offer.