The archipelago of Cape Verde is a closely knit group of 10 islands and 8 islets in the Atlantic Ocean, some 400 miles west of Senegal. The different islands boast their own identities and characters, some volcanic and mountainous, others flat and sandy, but all benefit from the wonderful dry tropical temperatures of 21°c to 31°c year long.
The stunning mountainous islands of Santo Antao, Sao Vicente and San Nicolao sit to the North of the group, while the sandy islands of Sal, Boa Vista and Maio with their stunning beaches are on the east of the group. To the south are the islands of Brava, with its abundance of flora, the volcanic Fogo, famous for it’s delicious wine and the largest island Santiago, with its white sandy coves and stunning, mountainous interior.
Set on the same latitude as Barbados, 3 hours from Brazil and 4 hours from mainland Europe, these beautiful, unspoiled islands of Cape Verde provide a new and exciting investment opportunity for property buyers who wish to maximise both capital growth and rental yields. Excellent all year weather, political stability, easy access to Europe with no jet lag, warm clear seas, stunning scenery and beautiful white sandy beaches make this an opportunity not to be missed.
Part One – Sal Island
Sal is the oldest island in the Cape Verde archipelago formed over 50 million years ago. 30km long and 12km wide, Sal is one of the 3 eastern islands offering white sandy beaches and crystal clear waters. Sal, home to the main international airport receiving regular direct flights from Manchester and London, is the most developed for tourism and the southern town of Santa Maria has become the main tourism hub. Formerly a salt working village, Santa Maria has become one of the world’s top locations for wind and kite surfers as well as being an excellent destination for diving and sun worshipping.
Property Market
Sal is the most established of the Cape Verde islands as far as tourism and property purchasing and is still the most popular island for investing in apartments and villas, both in the town of Santa Maria and in the new out of town 5 star gated communities launching on Ponta Preta Beach as well as further north on the island. Sal has an established international airport and both golf courses and marinas have been developed to support the increasing tourist trade.
Capital growth has been strong in Sal, around 15% a year and this is expected to continue, especially in the prime locations close to the beach, which will be highly sought after in the future. Property prices range from 39,000 euros for a small studio in Santa Maria, between 130,000 and 180,000 euros for a two bedroom apartment in a 5 star gated development and from 225,000 euros to 395,000 euros for a 3 bed villa. A beachfront 4 bed villa costs from 650,000 euros.
Properties available for sale
Dunas Beach, Sal
Luxury beach-front villas and deluxe apartments with a choice of one, two and three bedrooms, set on the white sands of Ponta Preta beach, and close to the town of Santa Maria on the popular Cape Verdian island of Sal. Prices start at €103,707/ £83,846 for a one-bed apartment, €124,360/ £100,544 for a two-bed apartment, €197,207/ £159,410 for a three-bed apartment and €279,707/ £226,098 for a three-bed villa.
Vila do Atlantico, Santa Maria, Sal
A range of studio, one and two-bed apartments and commercial units set just 100m from the beach in the picturesque town of Santa Maria on the Cape Verdian island of Sal, with excellent facilities including swimming pools, gardens, fitness centre and shops. Prices start at €66,000/ £51,910 for a studio apartment, €99,000/ £77,860 for a one-bed apartment, €115,000/ £90,500 for a two-bed apartment and commercial units from €90,000/ £70,780. There is also a 10% discount on off of these pre release prices for the next few months.
Quick Facts about Cape Verde
- Population: 482,000 (UN, 2005)
- Area: 4,033 sq km (1,557 sq miles)
- Climate: dry tropical with average temperatures ranging from 21°C to 31°C
- Major languages: Portuguese, Crioulo (a mixture of archaic Portuguese and African words)
- Monetary unit: Cape Verdean escudo (CVE) which is tied to the Euro (CVE 110.265 = 1 Euro)
- Cost of living is low with a small beer costing 70p and a pizza £4
- Cape Verde enjoys a “special partnership” with the European Union
- Mortgages for non residents are now available in Cape Verde up to 85% LTV
- Tourist visas are required and cost £25
- Direct flights are available from London Gatwick, London Stansted, Manchester
- Tourism to the islands has risen by 28% over the last 5 years welcoming 280,000 foreigners in 2006 (Source: Cabo Verde Investimentos)
Buying Guide to Cape Verde
Buying property in Cape Verde is a simple process; it follows the Portuguese model and has some local specifics. The Cape Verde government welcomes the foreign investor however as the market is in its infancy delays can occur. All property is sold freehold and no company formations are required to purchase.
After finding a desired property, the buyer should appoint an independent lawyer, preferably bi-lingual in Portuguese and English, who will conduct checks to ensure that the full property title is available, planning approval has been granted, that the developer has a building license and that there are no outstanding debts on the property. Always ask to see copies of these documents.
Once all checks have been made and the buyer has agreed to a purchase price, a promissory contract is signed and a 10-30% deposit is paid. This deposit is not refundable and secures the property. The final Deed of Conveyance, or the Escritura, has to be signed before a notary public in Cape Verde. The Escritura gives the purchaser complete title to the property, and is registered with the Land Registry and Tax Office. Once ownership is transferred and registered with the Land Office and the tax and notary charge is paid, the sale is complete. This should only be signed if you are 100% happy with your property. A local tax card is also necessary and should be obtained from the local tax office.
It is recommended that the buyer budgets an additional 5.5%- 8% of the property purchase price for the payment of notary fees, property transfer taxes and legal fees.
The majority of property bought in Cape Verde Ltd is through cash purchases; mortgages are available for non-residents however interest rates are currently higher than those commonly found in the UK.