Demand for real estate in Cuba is growing dramatically, a recent article published on the NPR (US-based National Public Radio) website has revealed.
Rapid Rise in Demand for Homes for Sale in Havana
According to the article entitled “Amid A Struggling Economy, Cuban Real Estate Is Booming”, property prices for colonial-style mansions and Art Deco apartments in Cuba’s capital Havana have risen dramatically, particularly for homes with sea views or prime locations.
The boom in Cuban real estate is largely restricted to Havana however.
“The real estate boom is taking place in select areas and is an anomaly in Cuba’s otherwise sputtering economy, where austerity measures, electricity cuts and fuel shortages take a toll on everyday life,” International Correspondent Carrie Kahn writes.
Property Law Reform & Improved US Relations
Once crumbling apartments on the Malecón, Havana’s famous strip along the seafront, have been revamped, improved and modernized and almost doubled in price in 2-3 years.
Demand for Cuba real estate has risen dramatically since President Raul Castro’s reforms allowing Cubans to buy and sell property and, in particular, since relations with the USA started to thaw.
However, while interest in apartments for sale in Havana has soared, impediments to growth remain.
The US trade embargo prohibits Americans from investing in Cuban property.
In addition, Cuban law only permits residents to purchase homes in Cuba. “But that hasn’t stopped foreigners from finding loopholes and fueling the frenzy,” Kahn writes.
Buyers with a relative or friend in Cuba and Cuban-American buyers who have reclaimed citizenship have found ways to swerve the restrictions.
A Golden Future for Cuban Real Estate?
Nevertheless there are other concerns to buyers looking at investing in Cuba.
“The infrastructure in the city is poor,” Kahn comments. “The roads are bad and electricity and water are unreliable. And no guarantees the government won’t reverse existing private-property laws.”
What the future holds for the Cuban real estate market only time will tell.