The Caribbean on your Doorstep

27th June 2008

We all dream of a beachfront villa with white sandy beaches, palm trees and Caribbean sunshine. And this generally remains a dream - the flight time and cost of those flights, the transfers, the actual cost of the property, the hurricane risk all combine to do so.

There is an emerging market in a group of islands just off the West coast of Africa which you might have heard of. Originally colonised by the Portuguese, these 14 islands are collectively knows as Cape Verde (‘Green Cape'). The major reason for this emergence and growth is the location: the same latitude as the Caribbean, giving fantastic weather, but just outside Europe so you get a much shorter flight time (5 hours approx) and you are not in the hurricane zone.

In essence, these beautiful islands are perfect for someone who wants the dream destination but doesn't want to spend days travelling or pay a fortune for the privilege. The area is undergoing a massive development and regeneration - utilities, hotels, marinas are all being built along with a wide range of holiday properties, ranging from one and two bedroomed apartments right up to 7 bed villas on the beach!

I have always been a firm believer in being what the gadget guys call an "early adopter" - I've lost count of how many gizmos I've bought before everyone else (remember the ZX81?). Now, some of these have been complete wastes of money (but fun at the time!) and some have paid dividends in going up in value or being indispensable pieces of kit.

Early adoption is what made a lot of people a lot of money in Spain the past 20 years because of the massive increase in property values and rental income. I missed that boat but am always looking for the next big thing - I feel that Cape Verde (along with Egypt, Turkey and maybe Morocco) is set to really fly in the next 5-10 years.

Now, a lot of people have invested in Sal (the main island) because there is an international airport and direct flights from the UK. This has put a premium on prices. What we suggest is going to Boa Vista or Santiago where there will be proposed direct flights in the next 2 years - this means prices are low at the moment but with rise sharply at around about the time the properties we are marketing are finished. Prices start at £45 000 for a 1 bedroomed apartment and villas on the beach start at just £170 000, with local mortgages available.

We anticipate a 70-100% increase in prices upon completion and potential for up to 22% yield at that time also.

Jon Davies
www.holidayinyourpocket.com

 

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