Cape Verde offers palm-fringed white sandy beaches, year-round temperatures which average between 22 and 26oC, and lush green interiors: You could be forgiven for thinking that the destination I am describing lies somewhere in the Caribbean. However, while sharing many of its traits with the cluster of tropical islands located roughly nine hours flying time from the UK, Cape Verde is much closer to home.

Located approximately 400 kilometres west of the African coast and 1,500 kilometres south of the Canary Islands, the Cape Verde Islands is the closest tropical archipelago to Europe. Made up of ten main islands – Santo Antão, San Luzia, São Vicente, São Nicolau, Sal, Boa Vista, Santiago, Maio, Fogo and Brava – which span 4,033 square kilometres, it will be possible to reach this former Portuguese colony in less than six hours from the UK once Praia airport on Santiago starts receiving direct flights from Britain this November – a development which is sure to extend already fast-growing UK-based interest in this North African country.

Over the past two years Cape Verde islands have started to become increasingly popular with British tourists seeking winter sun and real estate. Their fairly close proximity to the UK, lack of jet lag – Cape Verde's time difference trails just one hour behind GMT throughout the year – and the fact that it is a fairly safe country, have all contributed in bringing the archipelago into the conscience of the British holidaymaker. In fact, according to the Glasgow Evening Times in May, a recent survey carried out by estate agents up and down the UK revealed that Cape Verde now tops the list of new tourist destinations where Brits most wish to spend their holidays, ahead of Bulgaria and Canada. The rise to prominence of Cape Verde as a holiday destination has not come about by accident. Almost from the moment Cape Verde gained independence from Portugal in the mid 1970s its government has set about transforming the country's economy from one comparable with other impoverished African nations to one that can be described, at the very least, as 'steady'. The country currently boasts the fourth-highest annual GDP in Africa, and is totally free from malaria and other tropical diseases.

Mass tourism had long been viewed by the country's government as the key factor in sustaining this economic development, and in 2001 it launched the National Development Plan to improve, among other things, all modes of transport, communications, healthcare, and water and sanitation provisions throughout the country. And with Cape Verde beginning to firmly establish itself as a holiday hot-spot, the government is now actively seeking overseas real estate buyers to further improve its economy. "The main area for overseas real estate purchasers has so far been the island of Sal", explains Michael Stuart of Property Cape Verde. "Santa Maria, on Sal, has been particularly popular as it is close to what was the country's first international airport currently possible to reach from the UK via Lisbon, Paris or Amsterdam] and has one of the country's best beaches", he adds.

Just 30 kilometres long and 12 kilometres wide Sal is the most north-eastern of the islands and is without a doubt the country's most developed in terms of tourist treats. Until the beginning of last year the island accounted for around 90 per cent of all Cape Verde-bound tourists, and as such is packed full of bars and restaurants, while it also boasts much of the country's best infrastructure and amenities. Sal is one of only three flat Cape Verdean islands – Boa Vista and Maio are the others – and while it arguably  lacks the dramatic green and exotic landscapes found on some of the country's more volcanic and mountainous islands, its golden sandy beaches are second to none. Santa Maria, in particular, has become something of a mecca for sun worshippers, water sport enthusiasts and scuba divers in recent years. Given the island's tourist potential, which was aided further by last September's opening of the five-star, all-inclusive Club Hotel Riu Funaná in Santa Marina, buy-to-let purchasers are likely to find Sal a particularly enticing investment opportunity with tourism there set to grow for the foreseeable future.

One new real estate development looking to capitalise on this expected increased interest is the Vila Verde Village located just 15 minutes from the island's airport. Designed in the style of a small colonial village amidst luxurious green surroundings, prices for real estate in the village start from as low as 60,000 euros for a studio apartment and rise to as much as 360,000 euros for a four-bedroom villa. However, while Sal may have been responsible for kick-starting the overseas tourism and property boom in Cape Verde, other islands are now starting to follow suit.

Cape Verde's largest island, Santiago (approximately 50 kilometres long and 25 kilometres wide), could hold particular interest for British purchasers. While Cape Verde's second international airport opened in the country's capital Praia – located on Santiago – last year, when direct flights begin flying to the airport from Britain in November the island, and the country in general, is likely to undergo a popularity boom with Brits unlike anything it has seen to date. "Santiago is the social, political, historical, cultural and financial centre of the entire archipelago", says Dominic McGlynn, deputy chairman of Sambala Investimentos. "The island boasts a buoyant musical, theatrical and art scene while also providing white sandy beaches, complemented by a mountainous interior offering massively dramatic peaks that rise to 1,392 metres (higher than anything in the UK) and then plunge into the deep blue Atlantic below", he adds.

The Cape Verde government has already began catering for what it hopes will be a tourism boom – and ultimately increased overseas interest in real estate – to match that already experienced on Sal, by approving the real estate development of the Sambala Resort, the first phase of which is due for completion in 2008. The resort, which is the largest commercial development so far constructed in Cape Verde, comprises of a 36-hole golf resort, a marina development, three tourism villages, 382 apartments, 68 townhouses and 56 shops and offices, and ten acres for villa development. And despite the fact that handover of keys for any of the real estate in the resort is not due to take place until November 2007 at the earliest, first phase investors will already be more than pleased with their purchase – real estate has increased in value by 33 per cent in the past 12 months alone, with prices in the resort currently starting from 77,250 euros. And according to McGlynn, the Sambala Resort is just the starting point for a number of developments that will help shape the island's future. "Sambala will invest over 600 million euros into Santiago over the next five years", he says. "David Chow, a Chinese billionaire, recently confirmed that he will invest up to US$300 million to transform the waterfront of Praia and form a hotel and casino on the Ilha de Santa Maria that lies in the bay. These commitments, along with other planned real estate developments for Santiago, confirm that it is fabulously positioned for strong future return on investment."

Away from Santiago and Sal, Stuart also mentions Boa Vista and São Vicente as other islands of Cape Verde which are starting to garner more interest with real estate investors. Both of these islands are set to open up international airports in the near future and once again this will impact greatly on the number of overseas arrivals it welcomes. Boa Vista is the closest island to the African coast and the the second-largest in the archipelago (31 kilometres long, 29 kilometres wide). Currently just a 12-minute air taxi journey from Sal airport, Boa Vista, like Sal, is best known for its extensive white sandy beaches, relatively flat landscape – the highest point is just 287 kilometres high – and ideal conditions for various water sport activities. A one-bedroom apartment in the island's Vila Cabral development, located on the edge of Boa Vista's capital city Sal Rei, would set you back just over 55,000 euros, and comes with a guaranteed 6 per cent leaseback return for the first year of ownership.

São Vicente, the most western island with the exception of Santo Antão, is one of Cape Verde's most economically important islands due to its position as the country's main shipping port – Britain has long used Mindelo, the island's capital, as a refuelling point. An island with volcanic origins, São Vicente boasts the kind of stunning scenery afforded to much of the country, and is also said to be the country's most cultural island – the annual Baia das Gatas festival has become an internationally renowned music event in recent years. Plans for a new real estate apartment development in the island's capital have recently been announced – residence Paradise-cenrto Mindelo – and is said to be just one of many planned for the island in the coming future.

Of course, there is also real estate available on the country's other islands – the uninhabited Santa Luzia being the major exception – which could be of interest to those seeking a real bargain. "If you want a Villa on Maio, for example, it will cost less than half of that on Sal", explains Stuart. While at the moment Cape Verde is, obviously, not at the same level of development infrastructure wise as similar, more established resorts – with the possible exception of Sal – those looking for a burgeoning market in a tropical hideaway may just find everything they hope for in Cape Verde.

Click here to read the World of Property interactive i-mag FREE now

Search for real estate in Cape Verde

For further information about real estate in Cape Verde:
Property Cape Verde
Sambala Investimentos

World of Property has produced Emerge, a handy 60 page guide to emerging property markets. To request a FREE copy, just Click Here, enter your address details and type the word Emerge in the Enquiry box and we'll do the rest. Or you can contact us by telephone during normal office hours on +44 (0) 1323 726040 to claim your free copy.

Article first published in June 2006

Photograph courtesy of Sambala Developments