Poverty lurks behind golden sands

Property prices in Cape Verde doubled last year, but the cash-poor islands have social issues that needs to be addressed Irish investors continue to buy in Cape Verde, but challenges remain for the archipelago, writes Francesca Lombardo.

Property prices in Cape Verde doubled last year, but the cash-poor islands have social issues that needs to be addressed Irish investors continue to buy in Cape Verde, but challenges remain for the archipelago, writes Francesca Lombardo.Not so long ago Irish property investors would have struggled to point to the islands of Cape Verde on a map, but today they represent a significant portion of the overseas buyers in this archipelago off the west coast of Africa.Property prices doubled in Cape Verde last year, according to Paul Aspeden, managing director of the investment firm IPC, and the country’s landscape is changing by the day with five-star hotels mushrooming on Sal, the only one of the ten islands in the archipelago to have an international airport. New airports are due to open this year on two other islands, Boa Vista and Sao Vicente.According to the Cape Verdean National Statistics Institute, tourist arrivals are growing at a rate of 22 per cent, with one million visitors expected by 2015, and international investors continue to put money into property there.Flights into Sal have risen dramatically this year and are ahead of forecasts, with new routes from Scandinavia, Britain, Germany and an increased schedule from Portugal.But behind the sandy beaches, crystal water and welcoming locals, contradictions abound. It is not unusual to see a rundown school with barefoot kids outside at the same time as locals drive past in flashy four-wheel drive cars.Sal still lags behind in terms of the upmarket restaurants and shops needed to meet the needs of the growing numbers of tourists holidaying on the island, and also faces challenges such as water shortages and the risk of overdevelopment. For potential investors the issue is how this still cash-poor country will overcome these difficulties and avoid becoming overdeveloped in the face of a rapidly growing construction sector.‘‘We welcome foreign investors, but we want to avoid the problems that eager developers who are only looking to make a fast buck can trigger,” said Sal’s mayor, Jorge Figueiredo. ‘‘Our aim is to ensure that Cape Verde develops into a long-term and flourishing tourist destination with a stable property market.”

In order to achieve this, the local municipality has drawn up a plan that will allocate a yearly €10 million budget for Sal. There are plans to create a municipal police force to patrol the area although crime is low while other projects including more roads, a new hospital and advanced water desalination technology to improve water supply are already under way.

Prices start at €75,000 for a one-bed apartment. The Irish firm Cape Verde Developments has apartments and villas for sale at its Paradise Beach scheme overlooking the beach in Sal. Prices range from €100,000 for a one bedroom apartment up to €700,000 for a luxury detached villa.Direct scheduled flights are not yet available from Dublin to Sal, although a number of charter airlines are understood to be examining the route. One of the airlines believed to be looking at the route is Astraeus, which currently flies directly from Manchester to Sal with a flying time of six hours.Contacts: IPC: 00441723– 588039, www.ipcltd.co.uk Cape Verde Developments: 021–4320955, www.capeverdedevelopment.com