Cape Verde - where investors dare
Cape Verde has been in the news for its property market prospects far too often for it to be ignored, it seems, with growing tourist numbers and new air routes adding to the excitement.
Of course, recent history has been full of new, emerging markets as investors become more adventurous and new transport links open up new possibilities. Eastern Europe was seen by some as being the next great thing, but now, according to overseas mortgage brokers Conti Financial Services, which launched a product for Cape Verde a month ago, the islands in the sun have taken over.
Referring to the islands as "one of the number one hotspots at the moment", Conti's international mortgage advisor Tom Foster said: "People are always looking for the next big thing and Cape Verde is certainly the name on everybody's lips."
Mr Foster said that Cape Verde has usurped Bulgaria as the new market which had most excited investors. Of course, some might suggest this is no great thing in and of itself, as specialists in the property market have now marked Bulgaria down as somewhere in which inexperienced investors in particular can end up losing money. Simon Tweddle, chief analyst for independent market analysts Property Secrets recently warned against investing in the "completely over-supplied" beach and mountain resorts of the country, saying: "You'll probably end up losing your shirt if you invest there."
Experts are not saying any such things about Cape Verde, least of all Mr Foster, who predicted: "A lot of the property will start completing and a lot more will become more feasible. We are anticipating it to really take off next year," noting that: "When a country is up and coming, the potential for capital growth is at its largest."
What may give the greatest strength to the words of Mr Foster is the kind of development which is taking place in the country, suggesting that Cape Verde is taking a holistic view of its development by ensuring its whole infrastructure grows, not just seaside apartments. Macauhub reported this week that the air hubs in the country will be upgraded and new roads and ports built with money lent at "favourable" rates from Cape Verde's old colonial masters in Portugal.
While Cape Verde has talked about applying to join the EU (despite being classified as an African country) without actually yet doing so, the money coming from Europe is being directed at the kind of projects which may help further expand all its economic activities, thus ensuring a broader base to support the property market in the longer term. Sensible and well planned growth, without the kind of oversupply which has blighted Bulgaria and some other new markets, could keep Cape Verde booming.
http://news.assetz.co.uk/articles/3881.html - 29 November 2007