CAPE VERDE… the ‘New Caribbean’
Property in CAPE VERDE
View PropertyCape Verde, once hailed as the ‘New Canary Islands’, has recently received a publicity upgrade and is now being hailed as the ‘New Caribbean’
Property CAPE VERDE – Introduction
Cape Verde, once hailed as the ‘New Canary Islands’, has recently received a publicity upgrade and is now being hailed as the ‘New Caribbean’ – quite an accolade for an archipelago that was a virtual unknown until the last decade. The reason for this analogy – the Islands share the same latitude, and therefore the same sun and sand formula, as their island counterparts across the other side of the ‘pond’.Cape Verde is a compact group of ten unspoilt islands and eight islets in the Atlantic Ocean some 400 miles west of the African nation of Sénegal. The most developed of the Islands include Santiago, the largest of the archipelago at 50km long by 25km wide, Sal, Boa Vista, Maio, Fogo and Brava. The Portuguese were the first to discover Cape Verde back in 1460 and in true ‘finders keepers’ style integrated the Islands into their Empire. As the centuries went by a mixture of Portuguese, English, French and Africans gave rise to the Cape Verdean people. In 1975, independence was gained from Portugal and a multi-party democratic government established in 1991.
Despite their diminutive size, the Islands offer a range of geography from the lofty peaks of the western islands to the level, sandy islands of Sal and Boa Vista in the east. The Islands offer universal appeal, and therefore year-round rental, and if you wish to do nothing but lie on the dunes, develop a good tan, cool off in the turquoise seas and enjoy a tasty mix of African, Portuguese and Brazilian cuisine by night, you will be in heaven in Cape Verde.
Those that need constant stimulation can try horse riding, bird-watching, game fishing, tennis, golf, walking across the rugged landscapes or scuba diving with the dolphins and loggerhead turtles. The Islands are also a surfer’s paradise, lured by open seas and almost constant breezes, in particular to the resort of Santa Maria on the island of Sal, which is ranked among the world’s top five windsurfing locations and a favourite training ground for world champion surfers.
Cape Verde – Geography and Climate
Cape Verde benefits from a Caribbean-style climate as the Islands share roughly the same latitude, albeit on the other side of the Atlantic. There is no rainy season, no low season and the archipelago is geographically sited
such that virtually no extreme weather conditions such as Tsunami or hurricanes have been reported to pass its
way (touch wood).
Cape Verde enjoys an unbelievable 360 days of sunshine per year and average daily temperatures consistently hover between 21ºC and 30ºC which is warmer and more reliable than even the Canary Islands – excellent news for strong rental yields. To boot, the sea water is like a bath-tub, sitting at between 22ºC and 26ºC regardless of the season.
Cape Verde – Accessibility
Accessibility to Cape Verde used to be a bit of a drag, generally having to stop in Lisbon to catch a connecting flight and pushing flying time from London up to seven hours. However, direct flights are now in place from the
UK thanks to airlines such as Thomson and Thomas Cook reducing flying time to 5.5 hours, only a touch longer than the ever-popular Canary Islands.
Direct flights are also in place from Lisbon, Madrid, Milan, Frankfurt, Brussels, Boston and beyond which again helps boost rental yields. Passenger traffic across the Islands’ seven airports rose 11.2% year on year in 2011, from 1.6 million to 1.78 million.
Cape Verde – Economy
Cape Verde has a well managed economy with strong economic foundations, a relatively low debt service ratio and an excellent repayment record. GDP growth has held up well in the face of global recession and is expected
to rise to 7.1% by 2013 according to the IMF, a figure the UK could only dream of. Another string to its stable bow is that the country’s currency, the Cape Verde Escudo, has been linked to the euro since its introduction in late 2001 thus keeping inflation low.
The archipelago is currently considering introducing the euro instead of its own escudo and it is already complying with most of the EU’s economic stability demands. Cape Verde authorities welcome foreign investment, particularly in the booming tourism sector, and the Islands are currently undergoing an extensive renewable energy programme (onshore wind farms) in order to reduce their reliance on expensive fuel imports.
Cape Verde – Tourism
In 2004 about only a thousand Brits visited the Cape Verde Islands, but now accessibility has been improved this area is becoming a significant tourist destination. According to the latest official statistics, tourist arrivals
continue growing at a rate of 20% per annum with 219,000 arriving in the first half of 2011, a percentage growth of 27.5% against the same period in 2010. It is projected that Cape Verde will reach half a million tourists annually by 2015 and one million by 2020.
The number of hotel beds is also increasing year-on-year. Spanish chain Riu has no less than five hotels across the Islands (four of them five star) and rival Spanish company Melia recently opened its five star hotel, Melia Tortuga Beach, on the island of Sal in 2011. Cape Verde ranked third on Skyscanner’s list of emerging destinations in 2011 proving there is now a strong winter sun rival to the Canaries in the mid-haul market from the UK.
Cape Verde – Property Market
Cape Verde is relatively small in size and adopts a policy for low-density building, meaning that the Islands will never become over-developed. Demand is high and supply is low – the ideal investment scenario. In terms of
potential for capital appreciation, prospective investors need only look 1,000 miles north at prices on the Canary Islands to see the long term potential for Cape Verde and given the all-year-round holiday season appeal, investors can be sure that their property will seldom be left empty.
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