What will the Curaçao real estate market look like in 2035?

Looking ahead to 2035, the housing market in Curaçao will likely look very different from what it does today. This is due to a few key trends: the growing divide between the local and international markets, the need to manage heat more efficiently, and the aging population. What should you keep in mind if you want to invest in real estate on the island in the future?

The most noticeable change is the structural disconnect between the international and local markets. By that time, areas such as Jan Thiel, Blue Bay, Coral Estate, and Westpunt will likely have completely decoupled from the local economy.

Prices in this “dollar market” move in tandem with real estate markets in the Netherlands and the United States. To circumvent the high entry prices in this segment, fractional ownership (where one purchases only a share in a luxury villa) has become the new standard.

In contrast, the local market faces affordability as its biggest challenge. This will likely force the government to impose stricter regulations on vacation rentals in residential neighborhoods and encourage densification and high-rise development around Willemstad in neighborhoods such as Montaña and Santa Rosa.

By 2035, climate adaptation will be directly linked to a home’s value. Living right on the coastline remains popular, but due to unaffordable insurance premiums for storm damage and sea-level rise, it becomes a privilege reserved for the very wealthiest. For the broader market, value is shifting toward self-sufficiency.

Homes with large rainwater tanks and advanced water recycling systems are significantly more valuable due to increased periods of drought.

Architecture is also changing; traditional construction is giving way to designs focused on passive cooling through smart wind orientation and insulation, necessary to keep the energy costs of air conditioning manageable.

Demographically speaking, the island is facing a double aging trend: the local population is growing older, and there is a steady influx of foreign retirees. This is creating enormous demand for ground-floor apartments and complexes with care facilities.

As a result, large, older family homes in neighborhoods such as Emmastad or Julianadorp will increasingly be redeveloped or converted into small-scale residential care facilities.

Geographical preferences are also undergoing a transformation. Willemstad—and particularly Punda and Otrobanda—is completely transforming into an “experience center” filled with boutique hotels and compact city apartments.

Bandabou in the west is losing its status as a remote area; thanks to improved infrastructure, it is becoming the premier location for luxury eco-villas and off-grid living. The middle class is moving to the central part of the island, safely situated above sea level yet still centrally located.

By 2035, gated communities will become more common. The local middle class will also increasingly gravitate toward neighborhoods with security. The “open streetscape” will gradually disappear in exchange for security and shared maintenance costs (homeowners’ associations).

The government will also impose stricter oversight on the rental of homes in ordinary residential streets (such as in Santa Maria or Koraal Specht) to tourists through Airbnb. For investors, it will likely be more attractive to shift toward gated communities and resorts.

These resorts often have dual zoning (residential and recreational) or special permits. As a result, two completely separate markets will emerge by 2035:

• The open neighborhoods: regulated, for permanent residents only, lower prices (since there are no investors bidding against each other).
• Gated communities: where rental income is still legal. This does drive up prices.

Finally, the nature of renting and investing is also changing. Although tax benefits for retirees may have been scaled back due to international pressure, the climate remains attractive.

The market is adapting to the “permanent” digital nomad, leading to flexible lease agreements and a wide range of fully furnished, “turnkey” homes with high-quality digital amenities.

Those investing now with an eye toward 2035 are therefore looking not only at the view, but above all for an energy-neutral, lifetime-proof home in a safe location.

Are you considering purchasing real estate on the island in the future? We’d be happy to advise you on your options. View all our properties in Curaçao here and schedule a viewing if you’re interested. Our experienced real estate agent will be happy to take the time to assist you.