We recently sat down with Reena Daswani, a real estate developer based in Curacao, to discuss her new project ZenCity.
Reena Daswani is the Vice President of the development team at ZenCity. Born and Raised in Curacao, Reena has a strong understanding of the local and Caribbean real estate markets, but also brings an international perspective. She recently graduated from The Wharton School at the University of Pennsylvania with a Bachelor of Science in Economics concentrating in Real Estate and Finance. She previously worked at The Permal Group and Deutsche Bank Asset Management in New York as a Hedge Fund Analyst before moving back to Curacao to join her family’s real estate business.
GP: You’re currently developing a luxury villa community called ZenCity in Curacao (located in the Caribbean Sea). Could you tell us about the project?
RD: The name ZenCity was inspired by our unique location. A couple of years ago we acquired the 40,000m2 plot of land primarily because it was located mere minutes from the island’s hottest beaches on one side, and from the shopping/restaurant/entertainment hub on the other side. We recognized the need in Curacao for a luxury real estate development that wasn’t located on the far reaching corners of the island; rather was in the center of all the activity, but was still large and private enough to be exclusive.
The master plan consists of 36 villa residences and multiple apartment buildings, with a lake and lakeview swimming pool at the center of the development. All the units have been uniquely positioned to take in the surrounding lakeview and designed to take advantage of the outdoor Caribbean lifestyle. Large terraces are integrated within the main indoor living area through sliding doors, so essentially the entire villa can feel like one big outdoor space if desired. There are beautiful Caribbean style pergola’s attached to the bedrooms as well, giving almost each bedroom a private outdoor space.
Another way we aimed to add value through design at ZenCity was by creating bedrooms which could be locked off from the rest of the villa. Curacao has an extremely strong rental market because of the large number of long term tourists we attract. Each villa has been designed in such a way that single bedrooms within a 3 bedroom villa residence can be rented out separately as each bedroom has a private entrance and an interior door that can lock it off from the rest of the home. This is particularly interesting to our clients who are purchasing their units primarily from an investment standpoint, as their investment in one 3 bedroom unit is essentially providing them with three distinct rental options.
At Wharton, a lot of my real estate classes focused on the concept of adding value to property through design so it is extremely exciting for me to work on a development where so much attention has been placed on value creation through design, location, and master planning.
GP: How has demand for this type of product changed over the last economic cycle?
RD: Curacao Real Estate is very unique because we have many different sources of demand for the luxury real estate product here. There are three distinct groups: local investors and residents, foreign investors, and foreign vacation home buyers. In terms of the local investors and residents, we have actually seen a much stronger demand in the past year because the locals realize the potential appreciation value of the project due to our strategic location. As we are currently in our “pre-construction pricing” phase, the demand continues to increase from our local buyers who want to lock in their preferred units at the lower pre-construction prices.
While worldwide demand for luxury real estate has decreased due to the economic crisis, Curacao’s upper end real estate market didn’t feel the effects as badly as some other markets did because we were never an oversupplied or overdeveloped market. Curacao’s real estate market is at the very beginning of its rise, so international buyers with an eye for up and coming markets are investing heavily now to take advantage of the high value appreciation in the years to come.
GP: How would you compare Curacao to other resort destinations in the Caribbean?
RD: The best way to describe it is that Curacao is unlike any other resort destination. Curacao has a strong Caribbean vibe, color, and feel, but you cannot miss the Dutch European sophistication and charm which encompasses the island as well. It is very much a European island with European infrastructure, quality, and food but with a laid back Caribbean attitude and the absence of European prices! We have some of the best diving/snorkeling in the Caribbean, our stunning Historical Downtown Area is on the UNESCO World Heritage List, and we were recently named by Microsoft’s Bing.com as one of the top 10 destinations in the world alongside Morocco, South Africa and Malaysia.
GP: From which countries do you see most of your foreign demand?
RD: The Netherlands is naturally a very strong market for us give our Dutch heritage. We are now seeing more diversified demand from others in Western Europe such as Germany, Belgium, and Italy. From this side of the Atlantic, our strongest demand comes from Canada, because our Canadian clients truly appreciate and understand the sophistication of Curacao and the potential of the real estate market here over that of other Caribbean destinations. We also have strong demand from Latin America. These extremely diverse sources of demand are also one of the main reasons the real estate value appreciation prospects here are so high. With so many distinct interested groups, we enjoy the advantages of a very well hedged demand pool.
GP: Are there any restrictions on foreigners buying in Curacao? Anything that one should be aware of?
RD: Dutch laws make it extremely easy for foreigners to purchase property in Curacao. Everything is officiated here through a Notary’s office which makes everything very convenient and official. Foreigners just need a copy of their passport as part of their purchase agreements. It is also very easy for foreign buyers to obtain financing from local banks and local banks even issue loans in multiple different currencies. Our prices are in US dollars which makes it even easier for foreigners to purchase property and we also provide extremely convenient maintenance programs so our foreign buyers never have to worry about maintaining their property while they are off island.
GP: And finally, where do you and your group see Curacao in 5-10 years?
RD: In 5 to 10 years, we see Curacao as really having established its niche as an exclusive and culturally rich destination for sophisticated travelers.
GP: Reena, thank you very much for your time. All the best with ZenCity.
For more information visit www.ZenCity.nl
Image: RD
