Investment Property Abroad

According to Kyero (www.kyero.com), one of Spain’s leading property portals, “Britons invested £12 billion in Spanish property in 2004/05”…”this is predicted to reach £21 billion by 2009”. The average price was a reported £160,000.

So why Spain?
Spain has always been a home away from home for the Brits. It’s got everything from sunshine and beaches to a high standard of life and a large UK expat community. Apparently ”one in three want to retire to Spain”.

Of the 400 people surveyed, Kyero found “26% viewing Spain as the ideal retirement destination due to the warmer climate, sociable atmosphere and reduced taxes”.

The type of Brit looking for a property in Spain is typically a male between 40 and 60 years old. It’s not just the British though. It appears Spain’s popularity stretches well being the British Isles – enquiries came in from Portuguese, American, Canadian, Dutch, Japanese, Australian, Swedish people.

Location
Location, as you would imagine, was very important to those surveyed – 97% said it was a major factor. The most highly sought after parts of Spain are Alicante, Granada and Malaga.

Within the chosen location, accessibility to amenities is an important factor when choosing where to buy. The most important ones are the shops, the hospital, the bar, restaurants, pharmacies, banks, post office, public transport, the police station and the airport.

Less important ones appear to be the golf course, schools, clubs, discos, marinas and churches.

Types of Properties
The most popular property types are studio apartments followed closely by 2 and 3 bedroom villas. The majority (73%) of respondents are looking for resale properties.

In Alicante, 3 bedroom apartments appear to be in big demand, whereas in Girona, Brits are after 3 bedroom villas. And in perpetually sunny Gran Canaria, there’s a big demand for 1-bedroom apartments with swimming pools.

According to the survey, most Brits are willing to pay from €150,000 to €200,000 for their new home in the sun.

Along with actually visiting the location, the Internet is one of the fastest and most efficient ways to find property abroad – 71% said they were using it as an information resource. Click here for more information about overseas investment property.

Leaving the Grey Skies Behind
According to the Institute for Public Policy Research (IPPR), “in total, around 41 nations each have at least 10,000 permanent British residents.”

Recent figures from a number of official and industry sources have highlighted what appears to be an exodus of Brits abroad. France and Spain are still the most popular choices but more and more UK homebuyers are now choosing destinations much further a field.

There has been a rise in the UK expat populations of the UAE, including Dubai (55,000), Pakistan (47,000), Singapore (45,000), Thailand (41,000) and China (36,000).

As the world gets smaller and smaller, more and more destinations are becoming accessible, particularly with the influx of budget airlines. Overseas property buyers want more choice of destination – whether they’re emigrating or just buying for investment purposes.

Estate agents and developers are having to adapt, in order to meet the needs of the more “globally demanding” customer. They need to be able to provide access to a much wider portfolio of properties worldwide and provide up to date, accurate information about these locations.

In order to satisfy the needs of this changing market, industry leaders will have to continually adapt their strategies in order to maximise sales opportunities.

The Canary Islands (Atlantic) and the Balearic Islands (Mediterranean) are famous throughout the world for their amazing beaches and climate, excellent club scenes and spectacularly diverse natural landscapes.

The two archipelagos are vastly different from each other. While the Canaries offer year round sunshine and warmth, the Balearic Islands get the same kind of climate as the mainland. The Canary Islands are known for their surreal volcanic landscapes, endless sandy beaches, lush green forests and warm Atlantic waters.

Think of the Balearics and you’ll probably immediately think of Ibiza’s legendary club scene, the island’s rugged Mediterranean beauty, Formentera’s paradise beaches along with endless yachts, glamour and wealth. As you can imagine, property Prices are significantly lower in the Canaries.

The Balearic Islands
The Balearic Islands are located off the East coast of Spain, across from Valencia and are characterised by many pretty bays, caves and capes. There’s four islands in total – Mallorca, Ibiza, Menorca and Formentera.

Formentera, one of the smaller islands has some of the best beaches in Spain; idyllic stretches of fine white sand with crystal clear blue waters.

Northern Mallorca has a rugged beauty unmatched anywhere else in the archipelago, while Ibiza has matured from the clubbing capital of Europe to one of the world’s hottest festival venues and chilled-out Menorca provides families with a small and gentle island enclave.

Ibiza is probably the best known of the Balearic Islands – famous for its frenzied and decadent club scene, which exploded during the nineties, attracting some of the world’s top DJ’s to the island’s mega clubs like Pacha, Maumission, Space and Es Paradis. The most vibrant nightlife can be found in San Antonia and Ibiza town.

It’s not all just clubbing though. Apart from having a thriving gay scene, Ibiza is a great place to go during the deserted winter months. It’s the perfect getaway – Isolated and peaceful with plenty of space and light; a vast contrast to the hectic summer months.

Menorca, located close by, produces an excellent gin, which locals drink with bitter lemon. The capital, called “Maó” is where they originally created Mayonnaise.

Ibiza and the rest of the Balearics have had a well-established property market for many years, attracting countless affluent Northern European and Spanish investors. This is where you’ll find some of the most extravagant villas in Spain – some of which run into the millions.

The Canary Islands
The Canary Islands, most notably Tenerife, Lanzarote and Gran Canaria, are equally as known and popular as the Balearics – although for different reasons.

Apart from their vastly diverse natural landscapes, the Canaries are Europe’s only real tropical paradise, offering guaranteed sunshine and a warm balmy climate all year long.

Volcanic in nature, they boast some truly Spectacular scenery with massive craters, huge volcanic rocks, formidable cliffs (Los Gigantes) and Spain’s tallest mountain peak (Mount Teide).

The average air temperature on the Canary Islands ranges from a comfortable 18ºC to a cosy 24º C all throughout the year. Even the water stays warm, – hovering between 22º C in summer and 19º C in winter. It’s a true sun and sea-worshiper’s paradise.

Canary V Balearic Property Prices
If you’re looking for an apartment on say Menorca, expect to pay at least €200,000. In Ibiza and Mallorca, prices start at least €300,000. Villas start at €400,000 and go very much upwards. (www.timesonline.co.uk)

The Canaries are a different story. Apartments start at around €90,000. A small detached property can be had for just €240,000-ish.

For buy-to-let investors, the Canaries offer year round rental yields because of the consistently hot and sunny climate.

Tenerife New Developments
Here’s a few examples of what you’re likely to find online…

Caleta Palms, La Caleta
Sales Price From : €445.000
Sales Price To : €890.000
Sales Price From : £313.377
Sales Price To : £626.755
Location : La Caleta, Tenerife

Island Golf Villas, Amarilla
Sales Price From : €472.000
Sales Price To : €657.000
Sales Price From : £332.391
Sales Price To : £462.672
Location : Amarilla Golf, Tenerife

According to Holidayrentals.co.uk, one of the leading web portals for property rentals throughout the globe, Europe remains a firm favourite with UK property investors. Up to 90% of all property purchased abroad by UK buyers is in Europe.

Despite the allure of far-off destinations like the Caribbean, Asia and the USA, British investors still prefer to invest closer to home.

Investing in Europe
UK investors and homebuyers are mostly choosing traditional locations like France, Spain, Portugal and Italy. They’re safe options for investors with well-established markets and proven potential. Homebuyers are attracted by the large expat communities, schooling facilities, climate and close proximity to the UK, amongst other things.

With the opening up of the EU, Eastern Europe has been put firmly on the map in terms of property investment potential. You can find properties here at a fraction of what you’d pay in the more established markets.

The proliferation of budget airlines offering very cheap fares to more and more European destinations has greatly helped these emerging markets.

Although these new markets offer very good value for money in terms of price, it’s not yet fully known if they have the same rental potential as the more traditional markets or if they’ll build the same number of expat communities.

Once War-torn, Croatia has emerged from its troubled past and gone on to become one of the most sought after investment areas of this year. This beautiful country with its stunning beaches, is very popular amongst British buyers, Istria, in particular.

Located on the very west part of Croatia, Istria is the largest peninsula on the country. It’s the most expensive part of the Croatia with a high proportion of new developments and new-build properties. That said, you can still easily find many Croatian houses in the coastal towns and villages traditional available for renovation.

Montenegro, one of the lesser-known investment areas has seen unprecedented growth. This lush green mountainous region, bordering on the Adriatic, is one of this year’s star performers. According to the Property Rentals website, there’s been an increase of 113% in rented property between since 2006.

Also known as the “Pearl of the Mediterranean” Montenegro covers 5,333 square miles (13,812 square kilometers) and is largely covered in thick forests with a narrow strip of land lying along the Adriatic Sea. In winter it gets a lot of snow and in summer it’s warm in the valleys.

Montenegro is renowned for its idyllic lakes, mountainous terrain and endless lush green valleys that lead down to the clear blue waters of the Adriatic Sea.

Property prices here vary dramatically from one region to the next – the coast is the most expensive region. But for those willing to go further inland, to say Lake Skadar, the old Royal Capital of Cetinje, they’ll find property up to 200%! Cheaper.

Top winter Sun Destinations – The Canary & Cape Verde Islands
If you’re looking for guaranteed sunshine and genuine warmth but don’t want to spend over ten hours in an airplane, the place to go this winter is the Canary Islands or Cape Verde, just one hour south.

Although mainland Spain is often promoted as a top winter sun destination, unless you want to go skiing, it’s not really. It’s certainly sunnier than the UK but can get very cold.

Any expat will tell you that Spain ranges from chilly in the winter to what feels like freezing. Along the coast you get strong wind chill and inland and on higher ground, the temperatures drop significantly.

The Canaries and Cape Verde are a different story altogether. Located off the north west coast of Africa, both have a very mild climate that remains constant throughout the year.

Known as the “Islands of Eternal Springtime”, the Canaries have an ideal climate where it’s never too hot and never too cold. The Cape Verde Islands are just few degrees warmer.

Tenerife, one of the most popular of the Canary Islands, is an ideal winter sun destination – an island of fascinating contrasts with something for both young and old. It also has excellent year-round rental potential for anyone considering investing on the island. Click the following for more information about – Tenerife property.

The spread of the European Union has opened many new property investment opportunities for western Europeans. Britons are choosing to invest in bricks and mortar everywhere from Hungary to the Costa del Sol! Now is an excellent time to buy.

The European Property Market
Property prices are dropping all over Europe. In Ireland and Spain and the UK for example, we’ve seen a significant shift in the value of properties. Experts predict that we’ll see deeper adjustments in the near future.

In Spain, the drop in values was partly due to overbuilding, amongst other things. With supply well exceeding demand, developers have become desperate to offload their properties, often at bargain prices. Spain has once again become a buyer’s market with some great bargains.

Although prices have dropped in Ireland, they were so high to begin with that finding a genuine bargain is still quite a challenge.

Overall, the EU is confident that growth will continue but at a much slower pace. For long-term investors, the advice is to hold tight because the market will eventually stabilize itself. In the meantime, homebuyers and investors can enjoy a more much realistic price range than in the previous years.

Finding Information
Up until recently, finding information about new emerging markets could be quite a challenge. But nowadays, with the internet, you can find every possible bit of information you need – everything from property listings and descriptions to local area information, market analysis and legal advice. It’s unquestionably one of the best ways to find out about new and existing property markets.

Popular Investment Areas
For many UK and Irish investors, Europe is still the most popular investment area, mainly because of its proximity.

The number of property “hot-spots” is growing all the time. Unlikely places like Hungary and Bulgaria are now offering some excellent investment opportunities for the record numbers of Brits that are buying foreign properties.

Developers and investors have already made significant profits in Bulgaria and now the idyllic Hungarian countryside has been put firmly on the map. It’s seeing rapid development, in an attempt to cope with the demand for properties.

Top Investment areas
Established markets like France, Spain, Portugal, The Canaries, Greece and Florida etc. still remain popular.

One of this year’s hottest new emerging markets is Cape Verde (just one hour south of the Canary Islands). With year round sunshine, affordable properties and a rapidly improving infrastructure, it has already produced significant returns on investment.

Other places to watch out for this year include: Budapest, Dubai, Morocco, Estonia, Saint Vincent & the Grenadines, Barbados, Thailand, Brazil, Australia, Turkey, Slovakia and Bulgaria.

Investment Tips
Anyone looking to invest in Spanish property will have to be realistic. The market has unquestionably slowed but still has very promising long-term potential. If you’re looking for a get rich quick investment, you’d be better off trying Cape Verde.

With property prices in Spain at a more reasonable level, there’s the possibility of buying and either renting the property or simply holding on to them in order to make a profit through long-term appreciation.

Extensive research is essential when dealing with both established and emerging markets. Buy-to-let investors need to thoroughly investigate the rental potential of the location and property. There’s an endless amount of factors to consider before determining the rental potential of the property, in both the long and short-term.

In places like Cape Verde, Canary Islands Barbados, Dubai, Saint Vincent & the Grenadines, you can achieve high rental yields all year long as they have a perfect year round climate.

Financing potential. At the moment banks are saying “no” to clients more often than not. Although a short while ago, it was fairly simple to get mortgages, under the current economic conditions banks are being a lot more frugal. So, remember you’ll need to make sure your credit is intact and that reasonable deposits can be put in place in order to get financing.

Overseas Investment Outlook
The opportunities are out there. It’s just a matter of finding them. In Spain, anyone looking at the long-term potential is likely to find many bargains.

Once you’re cautious, calculated and do all the proper research, buying a property abroad can be an exciting and very financially rewarding experience.

Every year, more and more ordinary people are investing their hard earned cash into bricks and mortar as opposed to traditional stocks and shares.

Overseas investment property is a popular and profitable option for UK buyers. You can find properties abroad, in often-exquisite locations with tropical climates, for significantly less than back in gloomy England. If carefully researched, these properties should have excellent buy-to-let potential and provide healthy property appreciation.

The Golden Years
Retiring to a dream home on some paradise island beneath endless blue skies is no longer something for the rich and famous. In fact, hundreds of thousands of Brits do it every year. And it’s not just retired people too. There are an increasing number of middle-aged people investing in overseas property with the intention of using it as a permanent or semi-permanent home in their forthcoming retirement.

It’s more than just a warmer climate that attracts UK buyers. Places like Spain, Portugal, Cape Verde, Turkey, Brazil and Barbados etc. offer a lower cost of living and a better quality of life – much better than living on their pension back in the UK.

Recently Turkey and Bulgaria have become very popular with UK buyers. Spain and Cyprus have always been favorites for UK retirees because of their established communities, warm climate, and high standard of living.

Buying a Holiday Home
With a holiday home you can use it yourself as well as rent it out and make significant earnings, especially in places with year round sunshine like Cape Verde and the Canary Islands. More and more couples are choosing this option. With the costs of air travel decreasing dramatically, it’s becoming easier and a lot cheaper to travel abroad.

Investing in Bricks and Mortar
Investing in property is a much more stable option than stocks and shares. The obvious difference is that the property value can’t be wiped out as easily as the value of the stocks and shares. Generally speaking, property investment is one of the safest forms of investment.

While it may not produce instant riches, in the long run it should produce significant returns on investment provided the market is strong and the choice of location and property are good.

Getting on the property ladder is a crucial step towards financial well being. If you borrow against your existing property it is significantly cheaper, meaning you might even be able to create a portfolio of properties.

Nowadays it’s quite common to find UK and Irish investors from a middle-income background with a portfolio of properties across various markets – Spain in particular.

The more adventurous or those with more disposable income, choose to diversify their risk and maximize their returns by investing in new emerging property markets like Turkey, Bulgaria, Cape Verde and Barbados etc.

Where to Invest
Along with traditional favorites like Greece, Spain, France and Portugal, Cape Verde, Brazil, Thailand, Australia, Turkey, Slovakia, Bulgaria, Budapest, Dubai, Morocco, Saint Vincent & the Grenadines and Barbados represent significant opportunities.

The Internet displays hundreds of thousands of overseas property for sale and
provides a wealth of information about new emerging markets, established markets and specific geographic locations – and their potential both as a place to live and invest.

Cape Verde, this year’s hottest emerging market, is attracting developers, investors and homebuyers from all over the world – from Ireland in particular.

This is one of 2007’s most rapidly growing markets yet up until recently it was completely unheard of. Most people had never even heard of Cape Verde let alone known where it was.

Now, with promises of serious capital appreciation over the years it’s one of the most talked about hot spots on the map.

Cape Verde (Cabo Verde)
To some extent, Cape Verde shares a similar geographical position to Ireland – in the Atlantic Ocean, at the very edge of the continent. The weather however is a different story…

It’s perpetual springtime here, with year round sunshine and average air temperature of between 22 and 27C and the sea temperature of 21 to 26C. Not a cloud or patch of rain in sight!

Cape Verde is an African country made up of ten main islands and five islets. The main islands are Santiago, Santo Antao, Boa Vista, Fogo, Sao Nicolau, Maio, Sao Vicente, Sal, Brava, and Santa Luzia.

The country gained independence from Portugal in 1975. Ever since 1990, they’ve been a pluralist democracy. Cape Verde covers an area of 4,033 sq. km, with around half the population living in Santiago (or Sao Tiago in Portuguese). This is home to Cape Verde’s capital city – Praia.

Cape Verde is on the same latitude as Barbados; it has a perfect tropical dry climate with very little rainfall. It’s three degrees warmer than the Canary Islands.

The islands are known for their stunningly diverse landscapes, with; endless white sandy beaches, crystal clear warm waters, formidable volcanic peaks, lush green vegetation and lunar-like desert-scapes.

Like the Canary Islands each individual Cape Verde Island is vastly different from the other with its own individual character, attractions and charm.

For the moment, most of the development is taking place on Sal, Santiago and Boa Vista, but it looks like Sao Nicolau, Maio and Sao Vicente are set to follow.

Investor’s paradise
Cape Verde is perfect for pure investors, whether they’re looking for a buy-to-let purchase or just want to increase their wealth through property appreciation.

It’s literally a virgin new-build property market. With cheap labour and good value for money properties, Cape Verde offers exceptional value for money for both developer and investor alike – much more so than traditional tourist hot-spots like Spain, The Canaries, Portugal and Greece etc.

The government realizes that Cape Verde’s future lies in tourism. They’ve seen it rise by 25% over the past four years and are keen to make sure it keeps on rising. They hope to see “annual tourism figures double to over 500,000 by 2015”, according to Dominic McGlynn of Sambala Developments.

Property Appreciation
Property appreciation (the key to investment security) is almost guaranteed on Cape Verde.

The Government aim to “permit only low-rise development and to promote eco-tourism and its own lively Creole culture”, according to Maria Rosario de Luz, the adviser to Cape Verde’s minister for economic growth.

The construction of new developments will be restricted in order to avoid the overdevelopment problems that have plagued many markets recently – most notably Spain.

So therefore, with a big demand for properties and a smaller demand of properties available (demand exceeding supply) investors can sit back and just watch their properties go up in value.

Cape Verde’s rental Potential
Tourism, which is growing steadily, drives the rental market. And, with year-round sunshine and some fantastic beaches, investors can rent out their properties all year long at tourist prices.

From an investment point of view this adds a huge degree of stability to any Cape Verde property purchase. It’s a key factor for investors, assuring them of Cape Verde’s solidity as a profitable and secure investment location.

On Cape Verde, it’s doubtful that your property will be left empty, for any significant time period.

The Cape Verde Island chain is located around 400 miles off the west coast of Senegal (Africa) about one hour south of Spain’s Canary Islands. It has a landscape, culture and atmosphere all of its own – completely distinct from the mainland.

Cape Verde is a land of stark contrasts; from its fiercely volcanic landscapes, to its endless sandy beaches, lush green forests and vast deserts.

Often called the “new Canary Islands” Cape Verde is very similar in both landscape and climate to its northern neighbours.

Like the Canaries, each Cape Verde Island is vastly different from the other. Unlike the Canaries, Cape Verde remains free of mass tourism and overdevelopment. Whether or not Cape Verde will go down the same road as the Canaries is hard to say. It’s certainly growing at a phenomenal rate.

Although it’s an African country, Cape Verde has a culture that’s distinctly different to most of the countries you’ll find in Western Africa.

They have their own traditions, music, languages and religion – most countries in Western Africa are a mixture of Islam and Animism, whereas on Cape Verde the majority are Catholic Mestizos.

Located between three continents, Cape Verdeans are as likely to have a European or South American outlook on life as an African outlook.

Crioulo is the spoken dialect in the northern islands, whereas in the south they speak Krioulo. Within each island, there are many variations of these dialects making communication quite complicated.

Crioulo and Krioulo are both based on colonial-era Portuguese. You’ll often here the occasional English or West African words thrown in.

It’s hard to categorize Cape Verde. It’s a mixture of African, Brazilian and European yet at the same time it’s completely different from the surrounding continents. It’s a fascinating and at the same time bewildering country – staggering beautiful and full of exotic charm.

Property Prices in Cape Verde
On Cape Verde prices are still relatively low, especially compared to the Canary Islands, Spain and France.

Here are a few examples of what you’re likely to find online…

Studio, Sal Island
Fantastic, reasonably priced, studio in the town of Santa Maria, Sal Island,
Sale Type: Off Plan
Price: £ 47,894

Studio Apartment, Santa Maria Island
Reasonably priced, studio apartments for sale in Santa Maria, Sal Island, Cape Verde. Only 15 minutes from the airport.
Type: Studio
Sale Type: Off Plan
Price: £ 45,449

Studio, Salinas Sand, Sal Island
Off plan luxury apartment with great facilities including shared pool, jacuzzi, bar and shops and also near beach.
Type: Apartment/Condo
Sale Type: Off Plan
Price: £ 46,413
Local price: Esc 7,557,243

The Future
Cape Verde is undoubtedly one of 2007’s most hyped-up property investment locations. Developers and agents are selling it as everything from “the Caribbean on your doorstep” to the “Canaries without the concrete”. One thing’s for sure, the islands are growing rapidly and the economic outlook is very good.

This once impoverished third world country is rapidly changing into one of the most important international resorts south of the Canaries.

There are concerns however about the darker side which mass tourism often brings. Crime levels have gone up slightly on the archipelago – at one stage they were negligible.

Most will agree though, that the positive impact of tourism on the country’s economy will far outweigh the bad. Tourism is the driving force behind Cape Verde’s development and is expected to increase employment, create a better standard of living and overall help build a wealthier nation.

Last year (2006) Cape Verde’s economy grew by the highest rate in almost a decade. According to MacauHub the international Monetary Fund state that the islands recorded economic growth of 10.8% during 2006.

These figures have shocked everyone – even the Cape Verde Government who had suspected an economic growth of between 6 and 7%.

Jose Maria Neves, Cape Verde’s prime minister, states that the islands’ emerging tourist sector is largely responsible for this growth, describing it as the “main engine” driving the economy.

Along with excellent value for money properties, Cape Verde’s increasing popularity as a year round holiday destination has helped create a boom in its property market.

Out of Africa – Cape Verde
Located in the Atlantic Ocean, just 400 miles west of Dakar, this small island chain has a landscape, climate and atmosphere like nowhere on mainland Africa.

Cape Verde is full of surprises – full of contrasts; from its fiercely volcanic landscapes, bubbling with sulphur and fire to the flat, arid scrub of the Sahel.

Cape Verde is often compared to the Canary Islands – the Canary Islands before the cement mixers moved in and mass development took place. Whether or not Cape Verde will see the same consistent growth as the Canaries is hard to say. Up until recently, development on Cape Verde had been slow and inconsistent; this is changing rapidly though, as demand for properties escalates.

Cape Verde has a cultural and charm that’s distinctly unique from the mainland. While most West African countries are a mixture of Islam and Animism (the belief that souls inhabit all or most objects), most Cape Verdeans are Catholic Mestizos. Their outlook on life is as European as it is African.

On the northern islands they speak Crioulo, whereas on the southern islands they speak Krioulo – both are based on colonial-era Portuguese with the occasional English and West African words thrown in.

Cape Verde defies generalizations. It’s hard to say exactly what makes it so different from its neighbours or what makes each of the individual islands so different from each other. It’s a fascinating yet bewildering country.

Property for Sale in Cape Verde
Here are a few examples of what you’re likely to pay on Cape Verde…

Studio Apartment Property for sale in Santa Maria, Cape Verde
Lovely reasonably priced, studio apartments for sale in Santa Maria, Sal Island, Cape Verde. Only 15 minutes from the airport.
Type: Studio
Sale Type: Off Plan
Price: £ 45,449

Studio apartment property, Salinas Sand, Sal, Cape Verde
Studio apartment for sale in Santa Maria in Sal Cape Verde. Off plan luxury apartment with great facilities including shared pool, jacuzzi, bar and shops and also near beach.
Type: Apartment/Condo
Sale Type: Off Plan
Price: £ 46,413
Local price: Esc 7,557,243

Studio Apartment Property on Sal Island, Cape Verde
Fantastic, reasonably priced, studio apartments for sale in the town of Santa Maria, Sal Island, Cape Verde.
Type: Studio
Sale Type: Off Plan
Price: £ 47,894

What will the Future Hold for Cape Verde…
Cape was once regarded as a tiny windswept archipelago, literally in the middle of nowhere and of no real importance whatsoever.

Now it’s being labeled everything from the “new Canary Islands” to Barbados without the jetlag”. The hype is phenomenal. Some people are skeptical as whether or not the islands will measure up.

The local Cape Verdeans seem confused by their newfound transitional state – impoverished Third World country, stroke super slick international resort.

It appears that crime levels on Cape Verde, although once non-existent, are slowly starting to rise and there are concerns about the darker sides of tourism.

Overall, the positive impact of tourist on Cape Verde should far outweigh the bad. The economy is booming and employment should rise as the tourism industry thrives and the nation becomes wealthier.

“Bemused by the architects’ plans for a huge coastal development on Santiago laid out before him, one minister is said to have exclaimed: ‘Why would they want to come here? All we have is sun and beaches’”.

Recently an article by Robert Nurden (The Telegraph) looked at 2007’s most lucrative emerging market – The Cape Verde Islands.

Initially the Cape Verdean Government thought their islands would be of no interest whatsoever to northern Europeans. It didn’t take long to convince them that all Europeans wanted from a holiday destination was sun and beaches.

After seeing the demand for property on the archipelago and the how much tourism will benefit their economy, the government is now welcoming European investors with open arms. They’re literally throwing money into the islands’ infrastructure and development.

Many UK buyers are purchasing property on Cape Verde as a retirement home – a chance for a new beginning – where you can have a relaxed and healthy lifestyle in perpetual sunshine and warmth. It’s certainly a more adventurous and exotic option than say opening up a bar or restaurant in Benalmadena or Fuengirola.

Cape Verde Islands
Cape Verde is an African country, consisting of ten inhabited islands. It’s located in the Atlantic Ocean, about 400 miles off the west coast of Senegal, about one hour south of the Canary Islands. The people living here are a dynamic mixture of African, Portuguese and Brazilian.

UK and Irish buy-to-let investors along with the Italians have has a huge impact on the country’s rapidly developing infrastructure.

It’s the closest tropical paradise to Europe – just five-and-a-half hours (direct). Last year Astraeus Airline started its direct flights from Gatwick and Manchester. They fly once a week.

Why Choose Cape Verde
One of the archipelago’s biggest attractions is its close proximity. It’s been described “Barbados without the jetlag”.

The weather on Cape Verde is generally nicer than on the Canaries – which is quite impressive. It’s slightly hotter and more consistent – a perfect beach climate. It stays hot and sunny all year round, making it ideal for renting, whether it’s winter, summer, spring or autumn.

Cape Verde’s landscape is incredibly varied. You’ll see spectacular volcanic peaks, along with endless sandy beaches and lush green vegetation – very similar to the Caribbean Islands.

It’s still an emerging market. Investors who move now are still getting in at the beginning. Anyone who buys now will reap the benefits of the sharp increase in property values a few years down the line. As the islands are continually developed and nurtured property price increases are literally guaranteed.

Cape Verde is relatively crime free – especially when compared to modern-day Britain. It’s also politically stable, largely efficient and technologically advanced.

Investing In Cape Verde
A few years ago, buyers were investing solely for investment reasons; buy-to-let and property appreciation etc. They’d often buy in bulk, sometimes up to 10 apartments or more.

Things have clearly changed though. There’s not many UK buyers are looking to set up permanent residence on the islands (yet) – not like in Southern Spain and the Canaries.

There are however growing numbers of buyers looking for a holiday home that they can use themselves for a couple of weeks in the winter and rent out the rest of the year.

Most of the developments on Cape Verde are still in construction. There’s only a handful actually finished. Properties are in big demand. And with a price increase of 18 per cent last year, buyers are keen to get in quick.

Now is the time to move, as prices are still low. The starting price for an apartment is still as little as £30,000 – something you won’t find in Tenerife!

At the other end of the scale, a villa with six bedrooms, six bathrooms and a pool can be picked up for less than £350,000.

“The new Canary Islands”
Cape Verde is often labeled the new Canary Island mainly because of their similar location and similar climate.

But there is a danger that they might turn into another version of their less culturally diverse neighbours to the north – with widespread mass tourism and development.

The scale of development suggests that this seems inevitable.

It’s true, they are getting busier but as of yet, these paradise islands remain unspoilt, natural and bursting with indigenous Cape Verdean culture and charm.

One of the most popular and lucrative investment options throughout Spain, the Canary and Cape Verde Islands is buying off-plan.

Although it can be a gamble, if successful, off-plan projects greatly benefit the developer and estate agent as well as the buyer.

For developers, it’s a way of reducing their risk, while at the same time using someone else’s money to finance their project.

Estate agents make very generous commissions, when they sell an off-plan development. They’re normally quite easy to sell too. Amateur speculators are often very keen to buy into an investment option with a strong reputation for “guaranteed high-returns”.

Plus, they can make the sale, take the commissions and run. They don’t have to worry about complaints or hassles from the buyer who takes possession two years down the line.

A significant proportion of UK investors looking to buy property in Spain and the Canaries will choose off plan. Most of them are amateur speculators looking for that risk free, high return investment.

Buyers can make considerable savings when they buy off-plan. It has numerous advantages…

Advantages
Ideally, what you should end up with is a lower cost, high quality property, that’s risk free.

Price
This is the biggest advantage of buying off-plan. You can expect to pay around 10 – 30% less than you would for a similar resale property in Spain.

Developers charge less as a form of compensation. They’ll compensate you for taking the risk – as paying hundreds of thousands of euros for a property that hasn’t even been finished, or even started does involve a degree of risk.

You’re also being compensated for providing the developer with the money they’ll need to help finance the development.

Quality
What you get with an off-plan investment is a property made with the most up to date building materials using the latest construction techniques. They’re much higher quality than traditional Spanish constructions – which can be quite bad. In Spain and the Canaries a brand new property should be the highest quality in the market.

Over the past few years, building regulations have been tightened, encouraging much higher standards. They’re constantly improving – so the newer the property, the higher the quality. Having said that, it ultimately depends on the spec. offered by the developer – what kind of development he plans on building.

Risk Free Investment
In Spain, you’re entitled to a number of guarantees from the developer. The law covers you for different types of build defects over different periods.

If you buy off-plan, you’re property will be guaranteed against the most serious structural defects for 10 years. And if you buy a property form a developer that’s just been finished, you should get the same guarantee.

Flexibility
To some extent, you can have your own creative input into what the property will look like (colours, floorings, certain fixtures etc.). Developers can be very flexible on this. The degree of flexibility varies considerably from one developer to the next.

Selling the property
If you change your mind about the development and want to sell the purchase contract before the property is finished, you might be able to sell it on to a third party and make a huge profit in the process.

This has certainly been the case in the past and has also been one of off-plan investing’s greatest attractions.

Nowadays though, things are different. In Spain’s popular coastal areas, like the Costa de Sol, overbuilding has become a problem, making it more and more difficult to sell on properties before completion. On the Canaries and Cape Verde however, this is much less of a problem.