Welcome to BuyAssociation.co.uk

Cape Verde: Cape Verde

Guide to the Risk and Opportunity Ratings

At the end of each country profile, we have given a risk rating and an opportunity rating. These ratings are a summary of our analysis indicating the levels of risk when investing in a market and the level of opportunity to profit from it.

The ratings themselves are simple. Both work on a scale of one to five. The opportunity rating is indicated by the $ symbol. A single $ equals a low opportunity whilst 5 of them ($ $ $ $ $) equals the highest opportunity ranking.

For risk we have used the * symbol. A ranking of * equals a low risk rating whilst * * * * * equals a high risk rating.

Introduction

The Atlantic Islands of Cape Verde, sometimes known as Cabo Verde, initially attracted attention from international buyers because of their location. Situated 450 kilometres off the coast of Senegal, developers see this string of jewel-like islands as having the potential to become a new Canary Islands. Since 1975, when the islands separated from Portugal, they have been an independent republic.

The interiors of the 10 main islands and 8 islets may be wild and volcanic, but the beaches and constant warm temperatures justify Cape Verde’s new reputation. That more development is needed is certain: the lack of schools and roads mean that this is not yet the place to look for a second home. But the sheer newness of the market means that Cape Verde retains a sense of peace and tranquillity that more developed islands have lost.

The weather is a second attraction. With buyers of second homes often saying that they value sun, sea and sand, Cape Verde may have the edge over the markets in Eastern Europe. The climate here is consistently temperate, never varying much from the average of 25ºC. People buying in Cape Verde can take advantage of similar journey times but better all-year seasons than buyers who turn to the former Soviet bloc.

A final good sign is that the government sees tourism and the second home market as the best way in which to guarantee prosperity for Cape Verde. Tax breaks are offered to foreign investors (the first five years of home-ownership are tax free). The government is also working to promote tourism, to improve infrastructure and tourist amenities. They have even offered tax incentives to property developers. Tourism means everything to Cape Verde, and the government will offer every support to foreign nationals buying here.

Is this a good place to buy?

Direct flights between the UK and Cape Verde are slated to begin in 2006 (routes and carriers are yet to be confirmed), whilst connections to the US already exist. With the need for inconvenient and time-consuming travel connections dispensed with, and with increasing media coverage, Cape Verde will attract more tourists, some of whom will hope to invest in the nascent property industry. Buying into an off-plan development completing in the next two years could potentially place an investor in a position to sell on as tourists look for finished second homes.

Price history

Cape Verde is too new a market for prices to be easily understood. The same apartment that sells for £20,000 ($35,000) on one island or at one beach might sell for £40,000 elsewhere, either because of the developer’s whim or because another buyer has been willing to pay the higher price. Villas that last year were being marketed at £100,000 ($175,000) might now be advertised at £200,000. The market will settle and become more logical, but in the meantime it is worth investigating comparative properties and prices carefully. Ideally you should work with an agent that has the capability to identify the best opportunities.

More pages

Page 1: Guide to the Risk and Opportunity Ratings
Page 2: Which type of property should you go for?
Page 3: Purchase process

The best villa holidays from James Villas with our hand-picked villas and all the support you need in resort, we're the number one choice

The best deals on car hire in the UK, USA, Europe and beyond Alamo has the car you need at the price you want!

www.holidaylettings.co.uk online advertising for home owners abroad

Pre-launch investment in Cape Verde Five-star plus luxury from only £53,000, SIPP compliant