How to Buy A Property in Cape Verde

The new hot spot for 2007 is without doubt Cape Verde archipelago. These quaint islands have remained relatively unknown because up to recently there were no direct flights. This has now changed opening the doors to a Caribbean-style holiday only five hours? travel from the UK.

As a get-away destination, holiday-makers love it but so do property investors who have been attracted by the prices. Brand new developments are on offer at a fraction of the cost of the “real” Caribbean. Like the Canary Islands twenty years ago, Cape Verde is on the cusp of discovery – and is already benefiting from active co-operation between the governments of the two groups of islands, and the provision of the Canaries? wealth of experience and salutary lessons.

This small independent group of islands is, indeed, making friends far and wide, and has even received official recognition by the USA?s Millennium Challenge Corporation, which has invested 2.5 billion dollars so far, with a further 3 billion dollars pledged for later in 2007, and guaranteed increased funding for subsequent years. The extent of this investment will be highly reassuring to those who have already invested in the islands, as well as seriously encouraging for those about to seize the opportunity.

Stephen Eade, Sales Director of the international real estate agents The Horizon Property Group, answers questions about investing in Cape Verde.

Q: What returns can I expect from an investment in Cape Verde?
A: All properties in Cape Verde have enormous capital growth potential over the next five or so years. At present, only two islands have international airports, and within the next few months, a third will be granted international status. Further airports will follow over the next few years, and with the increased flight availability, prices are expected to soar. There is also an active commitment to co-ordinated infrastructure support, which will only serve to increase demand, and therefore prices, even further.

Q: How safe is it to invest in Cape Verde – it?s not in Europe, is it. Are the Islands politically and economically stable?  I don’t want to worry about my home when I’m not there?
A: The Cape Verde Islands are an independent African Republic, which has enjoyed stable democratic government since 1972, when the archipelago acquired independence from Portugal. It is this Portuguese background that means buying property in Cape Verde will be a familiar process to anyone who has bought property in Spain or Portugal, because the legal system derives from Portuguese precedents. All purchases are notarized, and with the Horizon Property Group?s expertise and knowledge, only the best and most reputable developers are promoted. The developments, moreover, have government support, and there is therefore no problem whatsoever with restrictions on foreigners owning property in Cape Verde. This combined with the investment from the USA’s Millennium Challenge Corporation mentioned in the introduction means that the Islands are also economically stable. Leaving the shrewd investors, that purchase now with total piece of mind while they are not there.

Q: Are the legalities difficult?
A: No. Horizon Property Group can provide introductions to an independent UK-based Cape Verdean specialist lawyer who will be able to take care of all final legalities.

Q: Will I be able to get any income from my property?
A: Yes. Rental demand is expected to be extremely high, and several developers are therefore offering guaranteed rental packages for the first two years of ownership.

Q: What is the standard of the building in Cape Verde?
A: Extremely high. Indeed, in some cases, developers are offering 50-year guarantees on structure, and 10-year guarantees on workmanship. The best developers, in fact, build to high North-European standard, and offer facilities such as pre-installation for air-conditioning, fully fitted kitchens, and granite worktops.

Q. What can I expect to buy for my money?
A. Property prices currently in Cape Verde are amongst the lowest in the World for an area that enjoys a sunny climate all year round. The easiest way to describe the Islands is to compare them to the Caribbean except 4 hours closer to the UK. The islands enjoy a year round average air and sea temperatures of 25? C with little or no rain fall. The beaches are white sand with emerald green seas. Prices range from £50,000 for studio apartments up to £400,000 for luxury 4 bedroom villas with private pools.

Q. Can finance be arranged?
A. Although the only banks currently offering mortgages are Cape Verdean, which does mean higher than UK interest rates, Banco Espirito Santo which is one of Portugal’s leading banks is now in the process of setting up offices in Cape Verde which will mean mortgages will become available at interest rates inline with what is currently available in Portugal. Horizon Property Group also has an agreement with BBVA, one of Spain’s leading banks so that investors can finance their purchase using the UK property as collateral.

Contact details
Horizon Property Group S.L
Tel from UK: 0871 720 6190
Tel from anywhere in Europe: (+34) 922 748 022

www.cape-verde-island-property.com

www.horizonpropertygroup.com

enquiry@horizonpropertygroup.com

13 April 2007