Investing in Cape Verde

International property and land investors have recently turned their attention to an exciting new tourist destination called Cape Verde. Many are calling Cape Verde the 'new Canary Islands' as their progress in tourism development is similar to the Canaries 15/20 years ago.

A few years ago the government earmarked 4 islands for tourist development, Sal, Boa Vista, Maio and Santiago. Major developments are already underway on these islands and they are proving to be popular with British and Irish investors who will be expecting excellent rental incomes and capital growth in the near future. However, other islands in Cape Verde are starting to develop tourist properties and the two that will be especially exciting over the next few years are Santo Antao and Sao Vincente. The government is keen for overseas investors to fund the growth and development of the visitor accommodation and hotels sector. Tourism numbers to Cape Verde are increasing and according to the latest official statistics, tourist arrivals continue growing at a rate of 22 percent and it is projected that Cape Verde will reach the benchmark of 1 million tourists annually by 2015. In time as the Cape Verde Islands become better known and the tourism infrastructure continues to develop, prices of both property and land will rise accordingly. Now is the time to invest in this emerging market before it becomes established as an international tourist destination.

The Cape Verde government welcomes foreign investors knowing that it will boost economic growth through job creation and capital investment. Recent legislation has allowed foreign investors to own land outfight and gives long tax holidays and reductions to tourism businesses. Other incentives allow all net revenues to be transferred out of the country and residency for business owners. The National Development Plan 2001-2005 has allowed the tourism infrastructure to be developed and its legacy includes new roads, up rated electricity supplies, water desalination plants for improved water supply and the building of new international airports.

There is also the bonus of the strong possibility that Cape Verde will be rapidly included into the EU and the benefits that will bring with it. Portugal and Spain are sponsoring the islands in Brussels to join the other Atlantic archipelagos, the Canaries, the Azores and Madeira in the EU. The local currency the 'Cape Verde Escudo' is fixed to the Euro at 1Euro=110cve a sure step to inclusion within EU soon. Cape Verde is also starting to cut ties with Africa in favour of Europe.

Prices are relatively inexpensive and Cape Verde remains cheaper than resorts in the Mediterranean or The Canaries for both property and land. At the moment there are no mortgages available in Cape Verde and many properties are sold 'off plan'. Prices start at £18,000 for a one bed apartment or £10,000 for a small plot of building land. Many plots are big enough to build a small apartment block which enables the individual to become a property developer. It is now becoming easier to buy land, find a builder and sell apartments 'off plan' in a market place where demand will quickly outstrip supply.