But Cape Verde is a relative newcomer to the real estate market, and prices here are much more affordable, while the climate and leisure opportunities are quite competitive. This "late ignition" is explained by the fact that the Cape Verde Islands are much further from Europe than Madeira and the Canaries, and, unlike them, are an independent state, not a province of a European country. For these reasons, air traffic to Cape Verde has not been regular for a long time, and only recently positive changes have been observed in this area.
Turtles at Cape Verde
Cape Verde has excellent sunny weather all year round, and this is the main advantage of the archipelago, which attracts more and more tourists every year. In addition, these islands are a real paradise for fishing and diving enthusiasts. Suffice it to say that there is more than one world record for catching fish in the coastal waters here, and watching huge sea turtles is one of the main attractions for divers.
The Cape Verde Islands also have a rich cultural past. In the past, the country was a Portuguese colony, and it is not surprising that the official language of Cape Verde is Portuguese. Recently, the city of Ciudad Velha, located 15 km from the capital of the country, Praia, was included in the UNESCO World Cultural Heritage List as the first European settlement in the tropics. The city was founded in 1492 by the Portuguese, and the buildings of the slave trade period are still partially preserved here. The islands have an active volcano Fogo, rising at 2,829 m above sea level and considered the highest point of Cape Verde. The population of the country is approximately 241,000 people.
The cost of living in Cape Verde is comparable to Western Europe, as most goods are imported to the islands. The country's currency is the Cape Verdean Escudo (CVE), but for most properties the price is indicated in euros. At the current exchange rate, one euro is about 110 Cape Verdean escudos. The service sector and telecommunications on the islands are well developed, given their remote location from the continent, and the entertainment infrastructure is mainly concentrated in resorts and near beaches.
The country has a calm political situation and one of the most stable democratic governments in Africa. The Government promotes the development of the real estate market and seeks to attract foreign investment. In 1993, a number of laws were passed for this purpose, including significantly reducing taxes for real estate buyers. Not so long ago, Cape Verde expressed its intention to join the EU, although such a possibility is unlikely.
Rough start
Most of the facilities in Cape Verde are sold at the off-plan stage, as intensive construction of modern complexes is underway on the island, and there are few ready-made offers even on the secondary market. This situation is due to the fact that both local residents and foreign investors do not seek to sell their property on the island in conditions of constant price increases. At the same time, the offers available on the secondary market often do not meet modern concepts of comfort, therefore they are also not popular.
When buying real estate at the off-plan stage, you need to make sure that the development company conducting the construction is reliable. The investor should visit the place where the residential complex will be built in advance, and not trust only the advertising brochures, because often remote places are chosen for construction, the infrastructure of which is only planned to be developed. An important factor in choosing a complex and an area for purchase is the degree of development of transport links: the road to the new complex may also only be in the plans. It should be noted that a quarter of all existing roads on the islands have not yet been paved, although an extensive program is currently being implemented to improve transport links.
Investors in this emerging market are attracted primarily by the low cost of real estate and the rapid price growth at the present time. The cost of 1 sq. m. The cost of living in modern residential complexes in Cape Verde is currently about 1200-1650 euros. Philip Watson of Sambala Developments claims that prices could rise by 70-80% in the next five years. However, when planning future income, it is worth considering that too fast a market upswing may lead to lower demand in the future, and the real profit may be lower than expected.
Cape Verde Islands are gradually becoming a popular tourist destination, and in the future, investors can count not only on profit from capital gains, but also on rental income. In this case, it is better to buy a house closer to the coast and in a place with developed transport. Experts note that the rental market will develop as infrastructure and services improve. Some construction companies, such as Sambala Developments, already guarantee rental income for up to two years.
Towards the Canaries
Many of the foreign investors choose to buy the island of Sal, which has a completely flat landscape. This island is great for a relaxing holiday, in its southern part there is a magnificent white sand beach, and you can fish in the coastal waters. The island has an international airport, built once by the Italian dictator Mussolini as a convenient refueling base between Italy and Argentina.
New modern complexes on the island of Sal are just beginning to be built. One of the most popular places is the charming city of Santa Maria, reminiscent of Cuba, with pastel–colored houses, narrow streets and small bars and restaurants. There are small complexes and hotels to the west of the city, and several larger facilities are going to be built nearby.
The residential part of Vila Verde, one of such complexes under construction, will consist of villas, townhouses and apartments in the colonial style. Sports and recreation infrastructure facilities will be built on its territory, it is planned to create green areas and even a botanical garden. The complex will also house beauty and health centers, shops, restaurants, bars. For a fee, you can use the pool maintenance services, as well as connect the Internet and cable TV.
Marble and granite will be used in the interior decoration of the Vila Verde houses, and modern equipment will be installed in the kitchens. The total area of the studio will be 36 square meters, and the most spacious three-bedroom apartments will have an area of 153 square meters, including a terrace. The area of townhouses with two and three bedrooms will range from 147 to 172 sq. m. The villas are designed with three or four bedrooms, a swimming pool, and the area of the houses will range from 224 to 364 sq. m. The developer of the project, Tecnicil, sells real estate in Vila Verde at a price of 100,000 euros. Demand is high, and it is likely that the complex will be completely sold out soon.
Santiago is the largest island of Cape Verde, with an area of approximately 990 square kilometers. Here are excellent conditions for recreation, a beautiful mountain landscape, many sandy coves and beaches, greenery. There are many interesting places for scuba diving in the coastal waters. This island is greener than Sal, sugar cane, bananas, and coconuts are grown here. Santiago is considered the most developed island in the archipelago, although so far there are fewer modern complexes here than, for example, on Sala.
The most modern and famous of the resorts under construction in Santiago, Sambala, is located in the southeast of the island, less than 10 km from the capital with its international airport. The first stage of the Sambala Village complex, consisting of 450 apartments, was immediately sold out in the spring of 2006. The already built-up part of the resort is located 1 km from the coast, not far from the large San Francisco beach. To the west of it, on the plain, gardens will be laid out, for irrigation of which a desalination plant is being built.
The sale of townhouses and villas of the Vivendas de Santiago complex, the construction of which began in 2006, has been opened. It is planned that in 10 years the resort will include 8,500 real estate units, and two 18-hole golf courses, three five-star hotels, a complex near the marina, a spa and wellness center, numerous restaurants and bars will be located on its territory. The cost of townhouses with two and three bedrooms is 165,000-1,99,000 euros. A three–bedroom villa costs from 275,000 euros, and a five-bedroom villa costs 335,000 euros.
In addition to these projects, many other modern complexes are being built and designed on the islands of Sal and Santiago. Development companies are also buying land on the less developed islands of the archipelago, such as Boa Vichta and San Vicenti. The situation is such that, following the growth of supply and the development of infrastructure, demand is also growing. Of course, this cannot continue indefinitely, but today the market is still far from saturation.
Cape Verdean real estate legislation is similar to Portuguese. The buyer must obtain a Personal Fiscal Number from the local tax office. When opening an account with a local bank, the number will beassigned automatically. At the conclusion of the transaction, the stamp duty is 3% of the value of the property. Notarial registration of property rights costs 1000 euros. In the bank of Cape Verde, you can take out a loan for the purchase of real estate in the amount of 80% of the cost, but a mortgage can only be obtained for the purchase of already built facilities.
Now the Cape Verdean real estate market is developing intensively, new complexes are being built, attracting more and more investors. It will take a long time before the Cape Verdean market reaches the same level of development as in the Canary Islands located to the north, so today's purchase is sure to bring good profits in the future.
