Although property in Cape Verde, once one of the most popular emerging real estate markets, has suffered during the global downturn there are signs that recovery is underway.
The market boomed during 2006 and 2007 and estate agents seemed to be springing up all over the place. Even in paradise the number of buyers declined and prices have begun to fall.
‘The property market was unquestionable hit by the economic crisis in 2008 but the effects were not as severe as in places like Spain,’ said Paul Akwei, managing director of Noscasa, one of the biggest agencies on the archipelago.
‘Because the market was not as over-inflated before the credit crunch it has not had so far to correct and values for both sellers and buyers are even more realistic. Prices are now settling at a level that is low enough to attract buyers but high enough to encourage sellers back into the market. We are very optimistic for the future and believe that Cape Verde is one overseas destination that will continue to develop without any lasting damage,’ he added.
Robert Medd, sales director at specialist property investment consultancy Emerging Real Estate, said that he expects prices to start rising with increases of 5% possible in the near future.
In recent times those who have been buying are savvy investors looking for distressed sales, retirees who were not prepared to let the financial crisis deter them from finding the perfect retirement home, and wealthy individuals looking for the right property in the right location no matter what the price.
According to Akwei Sal island, where Cape Verde’s international airport is located, remains the main attraction for both tourists and property investors, while those looking for lush mountainous like Sao Vicente and the capital island Santiago is also popular.
‘Before the financial crisis Cape Verde was Europe’s closest tropical destination with a constant climate, direct flights from the UK, a stable economy pegged to the euro, investor-friendly government policy and a vibrant culture and nothing has changed,’ he added.