CHAPTER NINE: Property Investing in Cape Verde

The Atlantic Islands of Cape Verde, sometimes known as Cabo Verde, initially attracted attention from international buyers because of their location. Situated 450 kilometres off the coast of Senegal, developers see this string of jewel-like islands as having the potential to become a new Canary Islands. Since 1975, when the islands separated from Portugal, they have been an independent republic.

The interiors of the 10 main islands and 8 islets may be wild and volcanic, but the beaches and constant warm temperatures justify Cape Verde’s new reputation. That more development is needed is certain: the lack of schools and roads mean that this is not yet the place to look for a second home. But the sheer newness of the market means that Cape Verde retains a sense of peace and tranquillity that more developed islands have lost.

The weather is a second attraction. With buyers of second homes often saying that they value sun, sea and sand, Cape Verde may have the edge over the markets in Eastern Europe. The climate here is consistently temperate, never varying much from the average of 25ºC. People buying in Cape Verde can take advantage of similar journey times but better all-year seasons than buyers who turn to the former Soviet bloc.

A final good sign is that the government sees tourism and the second home market as the best way in which to guarantee prosperity for Cape Verde. Tax breaks are offered to foreign investors (the first five years of home-ownership are…