We don’t have a section on Degtev about living in Cape Verde or even property investment in Cape Verde because the archipelago is just too untried and untested and emerging in our opinion. That is absolutely not to say that we cannot recognise the potential and appeal from an investment made into a property or even a lifestyle on the islands, rather we prefer to help our readers explore in-depth some of the better well known overseas locations for work, lifestyle and property-based opportunity.
However, there comes a time when the emergence of a ‘new’ property hotspot becomes so significant that you cannot ignore it – as is now the case with Cape Verde! Real Estate TV has a show called ‘Next Big Thing’ and at the moment there is an episode focused on the emergence of the archipelago as a property investment hotspot, and so to compliment their programme we thought we’d offer up our own take on the islands.
Cape Verde can be thought of as a ‘greenfield site’ – i.e., as a destination for property-based appeal it is truly untouched, undeveloped and unspoiled. It is a fresh emerging market where everything from the infrastructure to the amenities, from the property to the services are being added and developed from scratch. The entire ‘master plan’ behind the development of the archipelago is to create a resort-style destination that is the European and affordable equivalent to the Caribbean, and as an investor the most fundamental benefit of this is that you truly have the chance to get in from the very first stages and ride the longest potential wave of success. It also means that you have to be aware of and accept the potential risks that go along with making a cutting edge investment such as this.
The government of the archipelago of Cape Verde has truly embraced the concept of opening up their nation to foreign investment – they have policies in place to encourage and ease investment, and the fact that the government is doing all it can to facilitate investment and encourage tourism and foreign real estate ownership gives confidence to both the lifestyle home seeker and the property investor. After all there is nothing worse than seeing a window of opportunity in a property market only to constantly come up against the bureaucratic hurdles that restrictive governmental policies put in place which ultimately could stifle inward investment.
The reason the government is so welcoming of foreign investment is because it recognises that the tourism and real estate industries represent the very best chance the nation has of achieving the highest level of economic return. From a property investor’s point of view, the developing economy of the islands is attractive for two reasons, firstly it has allowed a broader base of investor interest to have access to the market simply because of affordability factors and secondly the strong and positive ongoing development of the economy in Cape Verde has assured would-be investors that there is the potential for longer-term, sustainable expansion which could positively impact any investment commitment made to Cape Verde.
When it comes to investment and what to buy, one needs to think about the long-term appeal of the property asset being purchased; basically investors need to think about location, amenities, facilities and quality. The better located, more frontline a property is, with access to the best facilities and amenities means that there will be the strongest potential for long-term success. Buyers need to remember that in the longer-term there will be a lot of property ‘product’ competing for a relatively fixed level of rental and resale demand, therefore the best property stock will sell or rent more easily for the most money!
Finally, when thinking about when to invest, many market analysts are saying that now is a good time to consider buying in if you like the thought of entering an emerging market and having access to the best potential profits and returns that it may offer – but we would just add that one has to be aware of the potential risks that go along with buying into a market that is untried and untested.