Cape Verde Property Investment News

Cape Verde's market to benefit as more flights announced

Cape Verde’s national flag carrier, Transportes Aéreos de Cabo Verde (TACV), has announced that it will be launching new routes direct between London and the islands in October this year. The additional flights, brought in to meet the rising demand from tourists and second-home owners, comprise a Monday service from London Stansted to Praia on Santiago, and a Thursday service from Stansted to the island of Sal’s primary international airport.

The decision by TACV to launch new flights has been welcomed by investors in Cape Verdean property, not least because of the timing which will further open the islands up for ‘winter sun’ holidays. As routes are in place to different regions around the islands, this also makes otherwise remote areas accessible to visitors, so generating rental demand in those areas.

This news comes shortly after the release of figures by the Bank of Cape Verde which show an increase in GDP over the last year – largely attributable to growing tourism – and a positive prediction for GDP growth over the next year. The most recent figures – reported by economic information service Macauhub – cover the period up until August 2007. Cape Verde’s GDP growth during 2006 was 6.1%, and given the figures for this year so far, the Bank of Cape Verde predicts growth of 6-7% for 2007. It highlights the major contribution to the nation’s economy from the export of services, and in particular the significant growth in gross tourism revenues of 45.5%.

As more airlines open up routes to Cape Verde, the rise in visitor numbers is expected to continue and so too is the growth of the archipelago’s economy. It also makes the islands increasingly accessible to second-home owners, so creating greater demand for resale as well as rental property.