Overseas property news - Coastal cape verde enticing investors

Coastal cape verde enticing investors

The buy-to-let market in Cape Verde looks set to boom with the country's beaches luring holidaymakers from the UK...

Commentators have suggested that Britons are increasingly opting to visit the Cape Verde islands instead of more far-off destinations such as the Maldives. Not only does Cape Verde apparently offer the same natural beauty as the Maldives, but it is closer.

For green-minded holidaymakers this will of course be a big attraction, as they bear in mind the effects of long-haul flying on the environment. This is also likely to influence the decision making of some buy-to-let investors when weighing up the benefits of buying property in Cape Verde.

No restrictions on foreign buyers

However, proximity and beauty aside, the Cape Verde government is actively working to make it easier for people to become a buy-to-let investor or holiday home owner in the country. There are no restrictions on foreigners who want to buy property in Cape Verde.

And the government's efforts seem to be paying off. Currency specialist firm HiFX revealed earlier this year that Cape Verde is among the emerging markets it believes are on their way to become investment hotspots. Its annual Global Property Hotspots report showed that while investors still choose France and Spain as their favourite destinations, markets such as that of Cape Verde seem to be catching up.

HiFX managing director Mark Bodega commented: "It is clear to see from our annual table that both old faithfuls are losing out to a handful of emerging markets such as Bulgaria, Dubai and Cape Verde."

"In many cases the emerging markets offer property which is significantly less expensive than the traditional favourites," he added.

Economy booming

The Cape Verde economy has also experienced significant growth over recent decades, creating a positive atmosphere for foreign investment. Between 1980 and 2005, per capita GDP grew by 128 per cent, according to the Global Property Guide.

And capital values are rising in tandem with new developments springing up on the ten islands that make up Cape Verde. The Global Property Guide reports capital growth of between ten and 15 per cent a year on property. However, buy-to-let investors can still bag a good deal on any of the islands.

It's little wonder then that so many property experts agree Cape Verde has big potential for property investors. The country is ranked among Channel 4's 20 best places to buy in the sun, with Amanda Lamb praising Cape Verde's "great beaches, fantastic surf and wonderful weather". And don't forget the property bargains.

The buy-to-let market in Cape Verde looks set to boom with the country's beaches luring holidaymakers from the UK. Last year saw visitor figures to Cape Verde surge by 26.4 per cent from 2005 - and it seems likely that the trend is set to continue.

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