Fixing the course
The tropical Cape Verde Islands are a relatively new destination for recreation and the purchase of second homes. Expedia, a travel company that sells airline tickets and hotel reservations, calls Cape Verde one of the ten countries most popular with British tourists.
Between 2000 and 2005, the number of visitors to Cape Verde increased by 25%, from 67,000 visitors in 2000 to 183,000 in 2005. Even considering the economic crisis, Cape Verde is holding its ground.
Adrian Liliwhite, director of Cape Verde Property, says that the national housing market showed good performance until September last year, but then the crisis affected Cape Verde as well. However, he assures that due to the willingness of developers to reduce prices, the number of people wishing to purchase real estate on the islands is not decreasing: "Now we see more and more customers who want to buy a house here." At the same time, according to Adrian Liliwhite, some sellers fix the euro exchange rate, to which the Cape Verde escudo is rigidly linked. For example, this is what the developer of the Dunas Beach Resort does when signing a contract for the purchase of an object under construction. The project is located on the most developed and popular island of Sal (the international airport is also located here).
Those who are looking for a holiday home in Cape Verde will not be able to pass by Dunas Beach Resort. There are swimming pools, restaurants, spas, bars and children's clubs. The construction of 600 housing units is planned to be completed by the end of 2011, the price for one–bedroom apartments starts from 89,000 euros, for three-bedroom villas - from 300,000 euros, and a villa by the water with five bedrooms will cost at least 750,000 euros.
"For about 20,000 euros, you can purchase high-quality furniture for apartments. And for those who are going to rent out their homes, it will be important that the resort is managed by a prestigious hotel chain," says Adrian Liliwhite.
Briton Kristin Everitt, who owns her own business, wanted to buy a house in some warm and comfortable country. In August last year, she made a deposit of 150,000 euros for the purchase of a two-bedroom, two-bathroom apartment at Dunas Beach Resort. Her apartment overlooks the golf course and both coasts. The price includes air conditioning, basic furniture and the services of a Portuguese lawyer.
"I was really lucky," says 59–year-old Kristin, "because at that time I didn't know that the price of housing also includes a 70 sq. m terrace, which is located on the roof. This is another floor, there is more space here than in my house in the UK."
Kristin has big plans. Since she loves playing badminton in her homeland and at the same time loves to relax in Cape Verde, she said, she could open a badminton league on the island of Sal.
In isolation from the whole world
Steve Eddalls, director of the British company Topa, specializing in Cape Verde real estate, believes that this country is suitable for those who prefer to combine their own vacation with investments. He advises paying attention to the Creola Sands complex on the island of Boa Vishta, which was recently awarded the Homes Overseas Awards. Now you can get a 15% discount here and reserve an object by opening a deposit of 3,000 euros. "The remaining amount is paid upon completion of construction, which is scheduled for the end of this year,– says Steve Eddalls. – The price includes all furniture and air conditioning. The buyer is also guaranteed an annual income from renting out his home in the amount of 6% for the first two years." Prices start from 81,600 euros for a studio apartment, and from 298,600 euros for a three-bedroom duplex.
Another popular place, according to Carly Todd from the British company GEM Estates, is Santiago, one of the leeward islands, where the capital of the country, Praia, is located. "Prices here are about two times lower than on the islands of Sal and Boa Vishta. In Santiago, foreigners have a better sense of the culture and history of the country, can enjoy the views of the mountains and the forest, as well as the atmosphere, which is undoubtedly something more than the beaches next to the hotels."
Carly Todd in Santiago recommends getting acquainted with the Vila Jardins do Oceano project. Villas on the first line with two and three bedrooms can be purchased at a price of about 300,000 and 400,000 euros. The relatively low cost of housing for such a complex is explained by the fact that there are no direct flights to the island and you should prepare to get here in the Indiana Jones style by plane. Have fun.
"Now is the time to make deals," says Carly Todd. Some developers sell housing at 2006 prices, and I also advise buying new, almost completed houses, as they tend to be even cheaper."
One, two, three... oversold!
There is another ambitious project on the island of Santiago – Sambala Resort with 2,000 facilities, of which 700 have already been sold. Facilities of three main queues are currently under construction. Two–bedroom townhouses will cost 188,700 euros, and a five-bedroom villa with a private pool will cost about 400,000 euros. When renting out housing, the services of the management company are estimated at 15% of the profit.
According to the resort's commercial director Darren Brown, the density of development on this large site is very low, in addition, the project provides for the creation of two golf courses. He also notes that now several properties in Sambala Resort are being resold, and even at a lower price than they were bought.
Andrea Lee from Select Resorts, a company that cooperates with Savills, also points out that now buying a home put up for resale can be very profitable. In her opinion, it makes sense to look for similar offers on the island of Sal, especially in not too popular areas at some distance from the city of Santa Maria. For 120,000 euros, you can find a one-bedroom house that will be located in a more secluded place than most large complexes under construction.
But, Andrea Lee says, it is a personal matter for everyone to choose housing under construction in a large resort or a secondary facility in a more remote area and without resort infrastructure. "Some people like restaurants, bars and the opportunity to play sports, while others will be happy just to have a pool, peace and quiet," the expert believes.
Another advantage of Cape Verde is that in this country there is no need to overpay for housing: the complexes here are very different, but the cost of apartments is kept within reasonable limits. So, on the island of Boa Vishta, in the Sabi Sands complex with two swimming pools, bars, a gym, a medical center, an Internet cafe, a supermarket and children's parks, the cost of apartments starts from only 100,000 euros.
