Assetz® News - Still on the up

Still on the up

25th September 2008 |

With Ireland going into recession and the US government battling to get a mortgage market rescue package approved, it may seem to some that the credit crunch is impacting everywhere, with nobody secure from its effects. But once again, it appears the prognosis for Cape Verde is much more optimistic.

Such an upbeat note was given in a long-term prediction for inward investment in the islands from economy minister Fatima Fialho. She told Reuters that she expects the country to see €20 billion (£15.92 billion) in foreign direct investment into the country over the next ten to 20 years, with most directed at tourism.

Tourism, of course, is the main driver of the Cape Verde property market, with those looking to invest in apartments for rent to the growing army of visitors hoping for further expansion and with it a rise in property values that is getting harder to find elsewhere.

As Reuters noted, this area is central to Cape Verde, given its lack of natural resources beyond sun, sand, sea and scenery.

Commenting on the tourism situation, Ms Fialho told the news agency that the projection for this sector is of 15 to 20 per cent growth per annum for the next five years.

She commented: "For the time being the forecast has not been revised but it is likely that there will be a downward revision because it is expected that the crisis will have a negative impact on tourism."

But a downward revision in the short term - dealing with the problems that may be faced by westerners in the next year or two - is not the same as the long term, when Cape Verde may continue to push ahead. Factors that may help this occur could be related to those which have helped the progress along so far.

For example, there is transport. If the last few years have been marked by an increase in services to Cape Verde from abroad, making possible the arrival of all those tourists in the first place, then better internal transport may help take matters a step further, helping those who fancy some island-hopping to do so. Such an undertaking will be easier from this week following the opening of a new domestic terminal at Sao Vicente Airport, as reported by Macauhub.

In a separate report, the same news provider has also reported this week that the government is distributing 300,000 free energy bulbs on the islands of Santiago and Sao Vicente. If this is an indication that following environmentally-friendly policies is a high priority, then there may be various benefits for tourism and its associated property.

Firstly, energy efficiency could ease any strain on resources, preventing economic and property growth from outstripping the generating capacity of the country. Secondly, it may encourage eco-friendly investors and tourists. Thirdly - and related to the second point - it could help ensure the natural beauty that attracts so many visitors is preserved and nurtured. At a time when so many other investment markets are in stormy waters, these islands in the sun may provide a serene destination.