Cape Verde Attracts Global Brand Hilton Hotels

Located off the west coast of Africa, Cape Verde has become something of a magnet for property investors and tourist trader seeking new hotspots. These previously uninhabited islands have become hot property over the last couple of years, and the announcement that a Hilton Worldwide Resort will open in 2010 has attracted more attention to the area. However, there are some who now believe that the islands are losing the identity which initially attracted so much interest to the area, prompting the question – Is Cape Verde suffering from over commercialisation?

The Republic of Cape Verde is actually made up of 10 islands which until recently were uninhabited, leaving something of a unique look and feel to the area – untouched by human hands. The islands have been compared very favourably to the Canary Islands with many believing that we have a similar situation, and similar potential for what could be a massive tourism market. However, it is still very early days for Cape Verde as the economy, tourist industry and worldwide profile are still very young.

The arrival of Hilton Hotels, the first globally branded business to place roots in the area, is a major sign of what is going on behind the scenes, with the authorities looking to attract large global players. While there is no doubt that Cape Verde is still an emerging country, the signs are that the economy will be driven solely by tourism, with few industry alternatives available on the islands or in the area. However, this is where we will see growing interest in the property market from overseas investors looking to be part of what looks like being the biggest mass market newcomer to the industry.

In order for there to be a sustainable property market, there needs to be a vibrant economy (something which is emerging) and there needs to be interest from property investors, whether these be local or overseas. Slowly but surely we are seeing these situations arise as both locals and overseas investors put money into local tourism infrastructure such as supermarkets, bars, restaurants and leisure services. With the advent of the Hilton brand coming to Cape Verde’s shores that are those who fear that over commercialisation of the area is inevitable and that property prices will sky rocket when all of the pieces of the jigsaw are finally in place. So is Cape Verde a risky investment for a would be property investor?

While there are risks with any new and emerging property market, Cape Verde seems to be in a similar situation to the likes of the Canary Islands in the early days of their foray into the tourism market. The local authorities are doing their best to attract new investors and visitors, the infrastructure is being built from virtually zero and new flights are bringing tourists flocking with Cape Verde registering record tourism figures to date. However, one of the unique selling points of Cape Verde is the old world feel, the untouched areas of the islands, something which will need to be retained in some shape or form to keep its unique selling points, unique!