When we look at the average value development of real estate on Curacao over the last 10 years, we generally do not see any substantial development. This has to do with a relatively stable real estate market regarding average residential areas. And Curacao has a lot of them.
Where do we see substantial value development?
In that part of the real estate sector where rental is possible to tourists, the so-called tourist real estate. Curaçao is increasingly becoming the favorite holiday destination for many people. In March of this year, almost 46,000 sun lovers visited Curacao, an increase of 13 percent compared to March 2022. The holidaymakers mainly come from Europe, but the Curaçao Tourist Board indicates an increase in tourists from North and South to find America. As a result, the occupancy rate of holiday villas and apartments in tourist areas, with Jan Thiel and the Vista Royal villa district directly adjacent to Jan Thiel Beach as the front runner, is increasing. These occupancy rates differ per area and determine your return for an important factor. The other factor is the average nightly price. Together, these factors form your expected return. You will now understand that the positive price development within tourist real estate is strongly determined by the return on investment to be achieved. This return is depressed by the operating costs you incur regarding the rental of your property. You can choose to outsource the technical management, i.e. the execution of necessary maintenance, but also the check-in of your guests and the cleaning of your property. You can also choose to outsource both technical and commercial maintenance. But of course, you can also keep commercial management in your own hands with a personal account on airbnb.com or booking.com.
Do you have questions about the exploitation possibilities of a vacation rental on Curacao and the capital returns you can achieve? Please contact our team for a no-obligation consultation.
We are happy to advise you further.