Cape Verde property set for good year

25.01.2008

A fast improving economy, increasing mortgage options and still affordable property prices are all factors that are expected to lead to 2008 being a good year for the Cape Verde property market.

At the beginning of this month the United Nations officially ratified Cape Verde's transition from a 'low-income' nation to a 'medium-income' nation, with foreign investment through tourism and property purchases responsible for the nation's booming economy.

The three islands of Sal, Santiago and Boa Vista have become particularly popular destinations for Cape Verde-bound property buyers and tourist arrivals over the past four or so years, to such an extent, in fact, the country's expat population (both temporary and permanent) is now larger than its local population.

And interest in Cape Verde property is likely to be further enhanced by a greater number of mortgage options becoming available over the coming year, largely the result of more Portuguese lenders entering the market. When mortgages in Cape Verde first became available to overseas property purchasers the typical loan to value offered tended to be around 70 per cent, with interest rates of around 11 per cent. Today it is possible to borrow up to 80-85 per cent of the purchase price, with interest rates as low as 7-8 per cent.

The fact that more, still affordable property is becoming available on the market is another sign that Cape Verde is set to enjoy a good year. "Two thousand and eight is going to be a very exciting year for Cape Verde," says Steve Worboys of Experience International. "Not only has the archipelago achieved the enviable 'middle income' country ranking from the UN and not only is it in receipt of significant loans and funding from the World Bank for growth and competitiveness programmes, but the government's ambitions to raise the standards in terms of tourism and real estate projects are finally coming to fruition with some stunning property projects coming to the market."

It is shaping up to be an interesting year for the Cape Verde property market.

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