From Second Home to Smart Investment: How Luxury Vacation Properties in Curaçao Are Becoming Sources of Passive Income

The line between second home and investment is slowly but surely fading. Today’s high-net-worth buyers are seeking out homes that double as assets. And in the Dutch Caribbean island of Curaçao, that is exactly what they are purchasing.​

Luxury vacation properties on the island deliver strong personal value and solid financial returns. For this reason, more buyers are opting to rent out their homes when they’re away. With the right setup, one property becomes both a retreat and a revenue stream.​

Global demand for upscale short-term rentals is climbing. Travelers want privacy, more space than a hotel, and are willing to pay for it.​

What’s Happening in Curaçao?​

Tourism in Curaçao is exploding. In the last year alone, stayover tourism rose by 18%, and North American arrivals increased by 24%. There are more flights and better infrastructure, which means more visitors across seasons.​

These visitors need places to stay, and luxury rentals – especially in desirable neighborhoods like Jan Thiel – are seeing high occupancy.​

Here are the numbers:​

• Gross rental yields: average 8–12% in the high-end segment.​
• Occupancy rates: 50–88%, depending on location.​
• Top performer: Jan Thiel leads with the highest average occupancy.​

Even mid-season, demand remains strong, and with tourism growth projected to continue through 2025 and beyond, the long-term outlook is highly favorable.​

What Drives Value?​

Location​

The island sits safely outside the hurricane belt, with direct flights from North America and Europe arriving daily. Buyers looking for ROI should prioritize walkability to beaches, restaurants, and attractions, since these microlocations fetch higher Airbnb rates and reduce vacancy between stays. Proximity to nightlife is attractive for younger guests, but privacy near the shoreline remains the gold standard.​

Design​

Travelers pay more for contemporary interiors, outdoor kitchens, poolside decks, and clean architectural lines. Properties with biophilic, bohemian, or Scandinavian styles are valued 50% higher or more. Flexible layouts matter: a minimum of three bedrooms plus three baths with an open-plan living area is often ideal for families or groups.​

Service Level​

The guest experience makes or breaks rental success. Five-star reviews boost visibility, raise pricing power, and keep occupancy high in shoulder months. Partnering with a strong rental manager is critical, since guests expect effortless check-ins and fast responses, plus quick resolution of maintenance issues.​

How to Balance Personal Use with Profit​

• Pick your weeks early: block your personal stay in advance, as peak weeks go fast, so your property manager can optimize the rest of the calendar.​
• Keep it turnkey: guests want a stocked kitchen, beach towels, clear instructions, and assistance when needed.​
• Price smart: let data drive your nightly rates with dynamic pricing tools that adjust based on seasonality and local events.​
• Lean on local experts: Palmstone Real Estate offers advisory services for owners who want maximum return without headaches and can connect you with a reliable rental management team.​
• Reinvest the returns: once cash flow starts, many owners scale by buying a second or third property in Curaçao, amplifying returns and flexibility for personal use.​

Ready to Start?​

Whether you’re looking for a quiet beachfront escape or a revenue-generating villa with full rental occupancy, Palmstone Real Estate is here to help. With deep knowledge of the Caribbean luxury real estate market, they help you make the right move at the right time. Let’s build a lifestyle that pays you back – get in touch today.​