As part of a raft of reforms set to bring change to Cuba, the Communist-run island will soon officially recognize private property.
New Constitution to Recognize Private Property
The proposed changes will be brought in under a new constitution which will replace the current Soviet-era constitution and introduce a range of other reforms aimed at modernizing the political system, including the creation of the position of prime minister (alongside the position of president), making the president head of the assembly and imposing a presidential term limit of 2 consecutive 5-year periods.
Former President Raul Castro initiated a series of market reforms in 2010 which stimulated the creation of new privately owned businesses and swelled the ranks of the self-employed, including real estate agents.
Proposed Reforms to be Put to a National Referendum
Details of the proposed new constitution have not yet been made available but, according to the Communist Party newspaper Granma, it enshrined recognition of both the free market and private property which heralds major change on the island.
The Castro-headed government commission tasked with modernizing the constitution is scheduled to present its draft to the national assembly later this month. It will then be put to a national referendum, most likely later this year.
What Does this Mean for Foreign Buyers with an Eye on Cuban Real Estate?
What this means for the Cuba real estate market and the potential involvement of foreign investors remains unclear.
Currently foreign investors looking to buy real estate in Cuba’s booming property market face various restrictions despite the passing of the Foreign Investment Act in 2014.
So, if you’ve always had your heart set on purchasing a home in Cuba, watch this space…