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Regulations issued in 1996 legalize private
land ownership making it possible to invest
in real estate and own property. Consequently
most foreigners invest in foreign real estate.
Property rights are now recognized and protected
from state expropriation. This opens the
door for real estate investment and development.
There is a potential windfall in redevelopment
in Havana or where housing has become substandard.
Dilapidated buildings abound, needing new
plumbing, water, electrical work and structural
redesign.
One area that promises to be a potential
gold mine is the run down decaying buildings
which border Havana's sea side malecón.
This area has the potential to become another
tourist Mecca like Miami's South Beach.
It is only a matter of time until this type
of transformation will take place.
About 80% of Cubans own their own homes.
Those who owned homes before the revolution
and stayed have been allowed to keep their
homes. Others have acquired homes since
then. By law Cubans can trade homes but
cannot sell them. The Urban Reform Law of
1960 changed rent payments into mortgage
payments on a five to 20 year basis. This
made owners out of renters. Today a large
percentage of Cubans own their own homes
and pay no property taxes.
There is a tremendous housing shortage
at present in Havana with some houses and
apartments housing several families
When looking to invest in land or housing
don't assume that the person who is selling
land is honest. Proceed with caution. Hire
a trustworthy attorney to explain the finer
points of local laws. Have your attorney
check out any documents and to help you
at every stage of negotiations. Make sure
he finds out who is the rightful owner of
the property and if there are any liens
and encumbrances. It is not unusual for
scam artists to sell the same piece of property
two or three times to different individuals.
Also, be sure to talk to your future neighbors.
Ask them about water shortages, safety,
burglaries or other problems in the area.
Inspect the property in person-never sight
unseen. Check to see if you need special
permits to build. Be sure to compare land
values in your area to see if you are paying
a fair price. Make sure that roads and streets
are in decent shape and that telephone and
electrical services are available if you
are building in a remote area. If you can
you are wise to rent in your favorite area
first in order to find out if it is really
for you.
Beach property is always a good investment
if you can find it for sale in Cuba. Be
sure to check out restrictions when buying
property adjacent to the beach. Before you
decide to move to an isolated beach area
or resort, be aware that the novelty of
living at the beach full time wears off
quickly. Visiting the beach for a few days
or weeks is very different than living there.
The humidity, boredom, lack of emergency
medical facilities in isolated areas, tourists
and crowds are factors to consider.
The sale of real estate in Cuba is a relatively
new addition to the local economy and one
that has materialized through the intense
demand from visiting tourists.
Recently it was announced for that, 1 the
first time, foreign tourists will be able
to buy condominiums and time-share units
as a part of a $250 million Canadian-Cuban
joint venture. The project, backed by the
Cuban government, calls for construction
of 2,000 luxury units over the next ten
years and is one of the biggest outside
investments yet in Cuba's tourism industry.
There will be many new projects with apartments
ranging from a simple studio unit to luxurious
penthouses, villas and condominiums. All
will have swimming pools, garages, central
air conditioning, power generators and all
of the other amenities of home. Most of
the projects currently underway are in the
Havana area extending from the eastern beach
region to the upscale Miramar area. There
are currently no mortgage services available
on the island although these services are
bound to be available in the not too distant
future as demand for new housing grows.
At least in the short term, American citizens
won't be among those buying into the new
resorts. But other foreigners have no such
constraints. However, all of this is sure
to change once Cuba and the US normalize
relations, hopefully in the not too distant
future.
Another encouraging sign in the Cuban real
estate market is that REMAX, which
operates one of the biggest chains of world
wide real estate offices, now has an office
in Cuba. Their office is found at 7ma esq.
14, Miramar, Tel; (24) 5005, Fax: (24) 5006,
E-mail: information@realestatecuba.com,
website: www.realestatecuba.com. Inmobilaria
Aurea in Habana Vieja also has property.
You may contact them at: Tel: (53-7) 66-9587,
Fax: (53-7) 66-9583. Finally, There is
Real Inmobilaria, in Miramar at Calle
3 #3407 esq. 36, Tel: (24) 9871, Fax: (24)
9875, E-mail: realin@columbus.cu.
Coldwell Banker is also working
on eventually establishing offices on the
Island. Most certainly the Latin American
division of Century 21 will try to
set up shop in Cuba. They already have dozens
of offices in Mexico and Central America.
All of these firms now offer world wide
multiple listing services.
A wealth of information about Cuba's current
real estate scene may be found through Real
Estate Cuba: www.realestatecuba.com, E-mail: sales@realestatecuba.com. They offer
information about properties for sale, home
searches, legal obligations and the real
estate business in Cuba.
The following consortia provide services
to ensure every aspect of your real estate
purchase is handled professionally, quickly
and confidentially:
HMR & Associates, Ltd.
P.O. Box 3820. Road Town Tortola, British
Virgin Islands Tel: (284) 494-2544 - Fax:
(284) 494-2552.
Tour and Marketing International
Havana Office. Centro de Negocios Zona
Franca Mariel Calle Desamparados No. 166
e/ Habana y Compostela Oficina No. 320.
Ciudad de Habana, Cuba
E-mail: help@primerasinversiones.com
Note: There are some Cubans selling property
illegally to foreigners under the table.
At this time we don't recommend purchasing
property this way since the property remains
in the Cuban owner's name and you have no
legal recourse if the deal eventually goes
sour.
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If you want more information contact in
Costa Rica Costa
Rica real estate and retirement properties or
call toll free 1 888 581 1786.
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