Just a few weeks into office, the new government has already started to shape the future of Aruba’s tourism and real estate landscape. A central piece of their plan is a proposed moratorium on new hotel and condominium developments, particularly in the high-traffic tourist zones. This aligns with their broader tourism strategy: prioritizing quality over quantity.
However, the door isn’t entirely closed. Exceptions are being made for boutique hotels and condo-hotels, especially in downtown Oranjestad and San Nicolas—areas that are ripe for revitalization.
Naturally, when supply is capped while demand continues to grow, prices tend to rise. That’s exactly what we’re witnessing in the ocean-view condo market. Limited inventory is pushing values up, and as foreigners find fewer condo options, many are turning their eyes toward single-family homes—adding upward pressure on that segment too.
On a macroeconomic note, the Trump tariff is likely to lead to slower growth and higher inflation in the U.S., at least in the short term. This could soften American buying power. But we’re also seeing new demand from other countries. Canadian buyers, having cashed out of their South Florida vacation properties at record highs, are increasingly looking to Aruba. Interest from Brazilian and Argentinian investors is also ticking up.
It’s worth noting: Aruba’s real estate remains competitively priced when compared to other Caribbean destinations, especially given its political stability, modern infrastructure, and beachfront access.
All things considered, we remain bullish on Aruba’s real estate fundamentals—especially properties near the ocean. The combination of limited supply, solid international interest, and a still-undervalued market makes for an appealing investment outlook.
Just my two cents.
