Assetz® News - A week to go for a strong market

A week to go for a strong market

17th July 2008 |

There are now just six days until July 23rd, a day that will represent a landmark in the history of the Cape Verde islands, one of the biggest since it gained independence from Portugal in 1975. For that is the day that the small Atlantic archipelago off the west coast of Africa will become the 152nd member of the World Trade Organisation (WTO).

With Cape Verde already an exciting property market seeing rapid growth as the tourist numbers climb and infrastructure expands, the WTO accession will mark the next step in this progression, both for commercial and residential property, according to Robert Medd, co-owner and sales director of overseas property investment firm Emerging Real Estate.

He said: "It [WTO membership] can only be a very positive thing. Obviously, tourism is their only source of income really and I'm sure that once they have this accreditation it will stimulate the confidence of big businesses, hotels or whoever would be interested in that."

Mr Medd added: "It's very good for the country and my main focus would be on the sort of credibility, opportunities and stability."

Of course, Cape Verde has not arrived at its present position by accident. Economic development has been partly down to outside investment and also down to internal governance and vision, with one example being the commitment to major projects such as building airports. Mr Medd noted that the arrival of new flights, particularly the direct links from Stansted, has produced a major advance in terms of the British penetration of the market, noting that this has "stimulated interest" and "if you can get there directly it certainly opens up the possibilities for everybody there".

The government of the islands is also investing in its sea port facilities, as Macauhub has reported today, providing a guarantee worth 400 million Cape Verdean escudos (£2.8 million) to port management firm Enapor - Portos de Cabo Verde for equipment as it seeks to develop the maritime transport industry.

But for all the hard cash floating around, the biggest asset remains the appeal of the islands, located as they are in the tropics and possessing a variety of different landscapes. Writing for Property Wire, Adrian Lillywhite of Cape Verde Properties has stated that on the second largest island of San Vicente there is a wealth of beaches and scenery, but in addition to this there is also a major expansion of tourist and transport infrastructure on the way, including five-star hotels, golf courses and an airport.

Stating that purchases now could see "great capital appreciation" as this expansion takes shape in the next few years, Mr Lillywhite said it was possible to get three bed townhouses in Baia dos Gatos, a small town near the island's largest settlement of Mindelo, for €120,000 (£95,000) or even a four-bed villa for €350,000. At such prices and in such a setting, there may be many around the world who might fancy organising some trade.

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