Cape Verde to hot up

With turmoil in other parts of Africa, it might be time for some property investors to take a closer look at Cape Verde.

A lot of property investors have been looking at Africa property investment as a way of staving off the fears of what a US recession would do to property markets all around the world.

While Asia would probably be a better choice in terms of removal from the US economic scene, at the same time there are compelling arguments for Africa being more detached economically and therefore a better place to make property investments in an attempt to avoid the oncoming downturns that are taking place all over the world.

However, the main problem with that theory is that up until now, it has primarily been derailed at all levels due to poor prospects in Africa outside of a few select countries like Egypt and Morocco, which many analysts argue have the same problems as the Middle East when it comes to escaping a US recession.

South Africa has been hit by multiple successive interest rate increases and the Kenyan market has descended into civil war and violence and therefore a clear option has not really been available for property investors looking to pursue an Africa-centric damage control strategy.

Well, Cape Verde might emerge as that option as it is certainly a country with a property market that is taking off. Both the Hilton hotel chain and the property fund The Resort Group have started operations in Cape Verde in the last month alone. The country itself is starting to garner additional international tourism and with it additional international attention.

With increasing tourism and international attention as well as a climate that is warm and hospitable all year round, analysts predict that the right course of events could result in property costs in Cape Verde gaining 70 per cent over the next 24 months. That would be quite remarkable if it happened and once again shows that Cape Verde has the potential to be a stronghold of property investment in Africa.

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