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WHY INVEST IN REAL ESTATE
Aruba is not only One Happy Island, it’s also a reliable investment destination. Large projects and investment opportunities are increasing on the island as government authorities aim to increase economic growth. That is why, apart from tourism, real estate has become one of the main economic drivers with the highest investment benefits. Here, you will find the answer to why you should invest in real estate in Aruba.
What Type of Real Estate Can You Invest In?
There are three main types of real estate projects to invest in. So you can choose the most suitable option for your investment goals. Each type of real estate investment has its own advantages and disadvantages. It is a necessity that you understand the risks and benefits of each before making an investment decision.
- Residential Properties: You can buy a finished apartment or one under construction. Having bought your property, you could rent it to get a return on your investment or allow it to appreciate over time if you want to sell it later.
- Commercial Properties: Investing in commercial property involves purchasing real estate for businesses or companies, such as offices, shops, warehouses, etc.
- Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance real estate. Investing in REITs involves buying shares in companies to earn a proportionate share of the income generated by their real estate rentals.
Property Offerings
Aruba has a wide variety of properties to choose from. You can even invest in tourist properties, such as hotels, resorts, or villas, to rent to visitors. Shares of these types of properties are also available for purchase.
The island also has an active residential real estate market. Properties range from small houses to luxury properties, such as Porta al Sole townhomes and Nanki at Rodgers Beach Aruba condo-hotel properties.
Finally, if you are interested in investing in the business sector, you may consider buying commercial space in a busy area to rent to local businesses. We recommend investing in the island’s most thriving commercial areas, such as Oranjestad, Palm Beach, Eagle Beach, and San Nicolas.
Property Value
Property values in Aruba vary based on their location, type of property, and other factors, such as the condition and age of the property. Prices for the most affordable apartments in Aruba range from $420,000 to $1,300,000, depending on the location, size, and amenities offered. At BlueAruba Realty, we have properties ranging from USD $420,000 to over $1,500,000. All of them are located in privileged areas of the island and provide accommodations that are suitable for couples, families, or business people.
How Is the Aruban Economy?
Aruba is an island with a small but diversified economy. The island’s economy relies on tourism, oil, as well as the financial and offshore industries. Tourism is Aruba’s largest economic engine, generating more than 80% of the island’s income. Aruba’s real estate industry also continues to grow and offers potential opportunities for economic growth.
Inflation Levels
Overall, Aruba’s economy is stable and diversified, focusing on sustainable tourism and economic development. As a result, the island has a relatively low unemployment rate and a high quality of life. According to the Central Bank of Aruba, the 12-month average inflation rate was 5.5% in December 2022.
Aruba’s Incentives to Investors
Aruba offers several benefits and incentives to local and foreign investors to foster economic growth. Some of the main incentives are:
- Loans to Purchase Properties: If you want to invest in a property, you can request financing. Banks generally lend up to 60% of the property’s value, with mortgages ranging from 10 to 30 years, depending on the borrower’s age.
- Free Zones: Aruba has several “free zones,” which offer companies tax and customs exemptions for importing and exporting goods and services.
- Tax Incentives: Incentives include an exemption for taxes on capital gains, reduced income taxes, and an exemption of taxes on gains obtained from property sales.
- Ease of Residence for Foreign Investors: Legal benefits are available to both locals and foreigners on the island. If you’re a foreigner and buy a property on the island, you may be eligible for residency if you meet a series of requirements.
Aruba’s Incentives to Investors
Aruba offers several benefits and incentives to local and foreign investors to foster economic growth. Some of the main incentives are:
- Loans to Purchase Properties: If you want to invest in a property, you can request financing. Banks generally lend up to 60% of the property’s value, with mortgages ranging from 10 to 30 years, depending on the borrower’s age.
- Free Zones: Aruba has several “free zones,” which offer companies tax and customs exemptions for importing and exporting goods and services.
- Tax Incentives: Incentives include an exemption for taxes on capital gains, reduced income taxes, and an exemption of taxes on gains obtained from property sales.
- Ease of Residence for Foreign Investors: Legal benefits are available to both locals and foreigners on the island. If you’re a foreigner and buy a property on the island, you may be eligible for residency if you meet a series of requirements.
Benefits of Aruba Due to Its Geographical Location
Aruba has a privileged location in the Caribbean. The island is outside the hurricane belt, making it a safe destination to vacation, live, and invest in. Some of the island’s benefits are:
- It is a gateway to Latin America, and its location makes it a transit hub for trade between North America, South America, and Europe.
- As a member of the EU and part of the Kingdom of the Netherlands, Aruba offers a free trade zone. Therefore, companies can freely trade with other EU countries without barriers.
- Aruba enjoys political and economic stability.
- It has developed infrastructure and continues to grow constantly.
- The climate is tropical and enviable.
So, why invest in real estate in Aruba? Because it is such a profitable, convenient, and wise decision you won’t regret it. Regardless of your plans for yourself, your business, or your family, Aruba offers many opportunities to achieve them. To make the right start, you can check out some of our available properties and request advice from our real estate experts.
