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The Cape Verde property market is growing at an incredible rate

Thursday 28th January 2016

Written by Roy Weatherby, The Overseas Investor

Cape Verde is fast becoming a property hotspot and the number of tourists visiting the country is growing year-on-year, between 2016 and 2025 the tourism sector is expected to grow by 5.7% every year. 
As a holiday destination, it is now been classed as an alternative to Sharm El Sheikh following the political unrest and terrorist attacks. 
Throughout 2016, property prices in Cape Verde are likely to grow considerably and even though the market has grown rapidly over the last ten years there are no signs that it is slowing down. 
As the tourism sector grows, so does the demand for holiday rental properties, ranging from private villas to well-located beachfront holiday resorts.
The government structure in Cape Verde is stable and they have plans to develop the island further in order to cope with the increase in tourism. There have also been improvements in the infrastructure as well as leisure and transport links. 
For those who are looking to invest, Cape Verde offers stable rental returns along with capital growth as a result of the year round demand for rental property. 
Due to the size of the islands, the level of development is restricted and this will lead to exclusivity. 
As there will be a limit on property ownership there will be an excess supply of property and this will lead to consistent rental returns and excellent capital growth.
European investors play a huge part in the demand for property in Cape Verde. Their reasons for purchasing are varied as some are looking for holiday homes while others are looking for long-term investments.
So why are investors purchasing?
The answer to this is simple. The strong rental yield is the main reason and many investors have experienced a higher return than they originally expected. Many off-plan properties are also promising returns of 7% per annum offering security and instant returns. 
Investors are also looking at buying into a hotel management scheme and because the hotels belong to well-known hotel operators they are well publicised and advertised. This will lead to demand and a consistent rental income. 
As income is guaranteed it offers investors the opportunity to increase their property portfolio because the higher returns the more likely they are to invest more. Investors are also interested in the lifestyle that comes with purchasing in Cape Verde. Many will look to use their properties through the year as holiday homes which means that they too can benefit from investing.
The future of the property market in Cape Verde is an exciting one and it is not looking as though it is going to slow down any time soon.
The long term growth of GDP in Cape Verde has sat at an average of 7.7% each year and economic growth is continuously performing well. Maritime and air transport is earmarked for development and this will ensure that Cape Verde appeals to a wider collection of investors. 
It is important to remember that Cape Verde is a destination that is still making a name for itself. The rapid growth in tourism is certainly helping it to grow which means that the long-term prospects for the property market are looking very promising. 
*For more information about property investment in Cape Verde, please contact Hopwood House.

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Editorial Contact Details - Conor Shilling
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