WILLEMSTAD – Construction costs in Curaçao are expected to continue rising in 2025, with contractors pointing to higher material prices, transportation costs and labor shortages as the main drivers behind more expensive building projects.
The latest construction sector survey by the Centrale Bank van Curaçao en Sint Maarten shows that a clear majority of construction companies expect material costs to increase this year. More than two-thirds of respondents expect construction material prices to rise by at least five percent, while nearly one-quarter expect increases of 15 percent or more.
The pressure is closely linked to Curaçao’s dependence on imported materials. The survey found that 44 percent of construction companies import construction-related products or services. This exposes the sector to international shipping costs, supply chain disruptions, geopolitical tensions and currency movements.
Transportation costs are one of the biggest concerns. More than half of respondents expect international transportation costs for construction materials and equipment to increase in 2025. Local transportation costs are also expected to rise, with nearly two-thirds of firms anticipating higher expenses.
Companies identified increased transportation and shipping costs as the most important driver of material price increases, followed by global supply chain disruptions and geopolitical tensions. These pressures are particularly important for a small island economy where many building inputs must be brought in from abroad.
The expected cost increases are already being reflected in construction prices. More than half of Curaçao contractors expect residential construction prices to rise in 2025, with nearly one-third expecting increases of 15 percent or more. For non-residential construction, companies also expect continued price increases, driven mainly by rising material costs and skilled labor shortages.
For homeowners, investors and developers, the findings point to a more expensive construction environment. Projects may become harder to budget, and delays in decision-making could result in higher final costs if material and labor prices continue to climb.
At the same time, construction companies are still showing confidence. Many firms expect the economy and business climate to improve, and more than half anticipate higher capital investment in 2025. This suggests that demand remains strong, but the cost of delivering projects is becoming increasingly difficult to control.
The CBCS survey shows that Curaçao’s construction sector is growing, but under pressure. Without measures to ease import-related costs, improve logistics and expand the skilled labor force, higher building prices may become one of the most visible consequences of the island’s construction boom.