Tourism Real Estate in Cape Verde: Where Is the Highest Return?

Tourism as the Foundation of Real Estate Investment

The real estate market in Cabo Verde is closely linked to tourism. The consistent growth in international visitors has created continuous demand for accommodation, particularly in coastal areas and islands with developed tourism infrastructure.

For investors, this means a direct relationship between tourist location + property type + operational model.

Which Types of Tourist Properties Generate the Highest Returns?

Not all tourist properties offer the same potential. In Cabo Verde, the best-performing assets tend to be:

• Well-located tourist apartments

• Holiday villas with a pool

• Properties integrated into resorts or serviced condominiums

• Properties within short distance to the beach

Properties designed from the outset for tourist use usually achieve more consistent occupancy rates.

Islands with the Highest Profit Potential

Sal
The most established market in the country, with high tourist demand, strong liquidity, and professional accommodation management. Entry prices are higher, but risk is lower.

Boa Vista
Similar profile to Sal, with large-scale tourist projects. Growth potential remains significant, especially for well-located developments.

Maio
An emerging market with lower prices and higher potential for future appreciation, but higher risk and dependency on infrastructure development.

Santiago (Praia)
Less tourist-focused but interesting for hybrid models, such as short- and medium-term rentals, business stays, and extended visits.

The Role of Management in Profitability

Tourism real estate profitability depends not only on the property but also on its management. Critical factors include:

• Professional property management

• Proper maintenance

• Marketing and online distribution

• Operational cost control

Investors who delegate management to experienced local operators tend to achieve more predictable results.

Risks and How to Mitigate Them

Although attractive, tourism real estate carries risks that must be considered:

• Seasonal fluctuations in demand

• Dependence on European source markets

• Maintenance costs in coastal areas

• Global economic volatility

Diversifying locations, selecting high-quality assets, and maintaining a medium- to long-term perspective help mitigate these risks.

Strategy: Income vs. Appreciation

Some investors prioritize immediate income, while others focus on property appreciation. In Cabo Verde, the optimal strategy often combines both:

• Tourist rental income to generate cash flow

• Gradual property appreciation over time

This hybrid approach has proven effective in emerging tourism markets.

Conclusion

Tourism real estate in Cabo Verde continues to offer real opportunities for returns, especially when investments are made in established areas with suitable properties and professional management.

Rather than seeking the highest theoretical return, investors should focus on sustainable income, controlled risk, and strategic vision.