A natural paradise… now a strategic destination

Cape Verde, a volcanic archipelago of ten islands off the coast of West Africa, is undergoing a remarkable economic and urban transformation. With its stable political climate, growing tourism, and increasing international interest, the country is becoming an emerging hotspot for real estate investment—especially on the islands of Boa Vista and Sal.

Steady growth in the past decade

Over the past 10 years, Cape Verde has seen:

• consistent GDP growth between 4% and 6%,
• rising levels of foreign direct investment (notably from Europe and China),
• steady expansion in the residential tourism sector,
• major improvements in infrastructure (airports, roads, energy and digital networks).

This development has led to a significant appreciation in real estate value, especially in coastal and tourist-oriented areas.

Why is Cape Verde attracting real estate investors?

1. Political and legal stability
   Cape Verde is one of the most democratic and politically stable countries in Africa. The legal system—based on Portuguese law—ensures transparency and full ownership rights for foreign investors.
2. Favorable tax conditions
   The government offers incentives for real estate and tourism development, along with reduced taxation for non-residents. Foreigners can buy property freely and securely.
3. Booming tourism
   With over 900,000 tourist arrivals in 2023 (in a country of just 560,000 inhabitants), Cape Verde is rapidly growing as a global travel destination. This has led to high demand for short-term rentals and seasonal residences.
4. Affordable entry prices
   Compared to other exotic destinations, property prices in Cape Verde remain relatively low. This leaves room for capital appreciation, especially in areas undergoing urban and touristic expansion.

Where is development concentrated?

• Sal Rei (Boa Vista): A fast-growing town, Sal Rei is attracting investments in beachfront residences, boutique resorts, and serviced apartments.
• Santa Maria (Sal): Long known for its beaches and watersports, Santa Maria is now seeing higher-end real estate projects and international buyers.
• Santiago & São Vicente: Culturally rich islands with more authentic charm and long-term investment potential in less tourist-saturated zones.

Investing now: opportunities and outlook

Cape Verde offers a dual opportunity:

• Rental income driven by high tourist traffic and limited supply of professionally managed units;
• Capital appreciation over the next 5–10 years as the market matures and infrastructure continues to improve.

Seaside locations, quality construction, and well-managed developments are particularly attractive to international buyers.

Conclusion

Cape Verde is no longer just a destination for seasoned travelers—it’s a growing ecosystem where natural beauty meets smart development. For real estate investors, the country represents a rare combination of affordability, safety, and high potential. And the time to act? It might just be now.