Cape banks on more expansion

Cape Verde has been one of the names on the lips of many a property investor in recent times as the African archipelago has exploded into the consciousness of developers, investors and, most importantly, of tourists. Being the closest tropical island to Britain geographically helps, not least as there is no time difference. But the situation has only played itself out to any great advantage in the last couple of years as direct flights have been established between the UK and the former Portuguese colony.

These things feed off each other, so perhaps it is no surprise that as tourist numbers rise, so in turn does the capacity to accommodate them, both in terms of rooms to stay in and, before that, airports to land at. One of the major features of the economic growth of Cape Verde - substantially dependent on tourism - has been the large-scale investment in infrastructure.

Investors will therefore hope for more of this, unless and until it reaches saturation point in the manner of some of Europe's worst seaside locations. But for now, the extra money is pouring in. Today Macauhub reported that the Arab Bank for Economic Development of Africa is poised to sign a funding agreement with the government to carry out a feasibility study on the possible expansion of Praia Airport, which in turn would cost €10 million (£8 million). The paper added that the bank was helping fund a number of projects across the country,
including a number of airport projects.

A bigger airport at Praia and other such expansions could help bring more tourists, but what will also help is the development of niche markets which go beyond simply attracting those who want to sit on a beach with a pina colada. Easier Property has reported that such a development is indeed taking place as the yachting fraternity is increasingly discovering the possibilities of the waters around the archipelago.

The report notes that the islands are offering warm waters and a year-round season, with plenty of challenges to test yachtsmen and plenty of facilities. This was all contributing to a highly positive investment scene according to Adrian Lillywhite, managing director at Cape Verde Property Ltd.

He said: "There are many Cape Verde property investment approaches that are proving successful in Cape Verde at the moment. For those simply interested in buying Cape Verde properties to let, rental yields of up to 8 per cent are being achieved easily because there is increasing demand for holiday accommodation, and this demand exists year round."

So while more airports are being built to fly people in high over the sea, it seems Cape Verde is offering plenty for all, on land, in the water and - for investors - in the bank balance.

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Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property