Cuban Real Estate

by Realigro Team On 12/26/2019

Havana is calming down

The Cuban real estate is one of the most unique in the world. Due to the long embargo with the United States, which only ended in 2014 with Obama’s decision to end it, Cuba has remained far from modernity for years.
But after years of intense unrest, the situation finally seems to have calmed down.
But what has been the market situation that has seen this country in recent years? How will it evolve ? Let’s analyze together the situation of the Cuban real estate !

The historical excursus

The year in which we can speak of a real increase in real estate was 2011. From this moment on, the Cuban real estate market inaugurated its expansion phase. In the following year, about 45,000 purchase and sale contracts were signed. Number doubled in 2013. A seemingly unstoppable trend . But, unfortunately, this was not the case. In fact, from 2014 onwards there was a dizzying collapse. It eliminated the phase of high expectations.

Further limitations

The current Trump administration, totally at odds with Obama’s, has introduced extremely restrictive policies. It reduces the interest of potential buyers. Among the various restrictions, we undoubtedly identify migratory restrictions. In addition the general decrease in tourist flows . It lowered demand and, automatically, house prices.

An immediate solution ?

It has to be said that there seems to be a well-defined solution to this ungovernable situation. It would be enough for the Cubans themselves, living abroad, to return to investing in the Cuban real estate. We are talking, in numerical terms, about 30,000 Cubans .In recent years, they have decided to move abroad.
But the heart of the Cuban real estate market resides in Havana. More than 90% of the ads are concentrated in the capital. The other most popular areas are mainly coastal areas. We remember (in ascending order) :

Old Havana
Habana Center
Plaza
Playa

The real criticality

As we have seen, it is by no means easy to lift Cuba out of this deadlock. We have, however, analysed in detail what alternative solutions could be available to allow potential investors to enter the Cuban real estate market.
In detail:

Improving local information systems, registers and the completion of the urban cadastre
Improving the regulation of the territory . (Through requalification instruments ).
Simplify the various overly bureaucratic procedures
Strengthening local finances through public-private partnerships
Adopting inclusive policies in the medium to long term.( to revitalise the territory ).
Define the procedures for the valuation of land and buildings (as standardised as possible).

It is hoped that 2020 will be a truly better year for the Cuban economy. But especially for real estate. It will take some time for these policies to find a practical response. But we advise you to always stay updated on our portal!