Cape Verde 'could be the next Spain'

According to Majestic Group Investments, seasoned property investors who have benefited from the lucrative French and Spanish markets are seeking new countries to invest in, such as Cape Verde.

The islands, which are showing signs of "exceptional" capital growth potential, have seen major investment in tourism-related infrastructure, such as new accommodation and the upgrading of the international airport on the island of Sal.

"With a stable political climate and good flight connections plus fabulous sandy beaches, perhaps Cape Verde is destined to be the next Spain," the firm stated.

The Cape Verde property index by Noscasa shows that property values grew by 17 per cent between January and October 2006, with Sal proving to be a particularly strong performer.

Cape Verde appeals to investors because it is less overdeveloped than the Canary Islands and prices are still relatively low, according to the estate agency.