|One unit in the building is for sale in central Havana (approx. $75,000 US).|
Photo: Phyllis Shess
Editor’s note: On a daily basis from June 1 thru June 30, 2015 Pillar to Post online magazine is featuring articles, photos and insights resulting from a recent group tour, an adventure we dubbed: the April 23 Brigade’s Tour of Cuba 2015.
REAL ESTATE TSUNAMI AHEAD
GUEST BLOG—By Cuba Homes Direct--For a number of years in the early 1990 Cuban law permitted the construction of some condominium style buildings where foreigners could buy an apartment. Those who bought these are now able to sell them to other foreigners who are not residents in Cuba.
There is in effect a two tier market operating in Cuba and so these properties form a distinct and separate market with current price significantly higher than the regular Cuban property market. Prices reflect the scarcity premium and the perceived benefit of Cuban residency. This is similar to the situation that exists in some other countries with restricted foreign investment in property such as the Channel Islands.
More from the Washington Post on Cuba’s
Serpentine real estate Market:
It is therefore possible for foreign investors to buy Real Estate in Cuba by Buying directly from one of the current foreigner who owns a home or an apartment in Cuba. The visa category, “Real Estate Resident” (Residente de Inmobiliaria) is now officially listed along with other types of visas that incoming foreigners can apply for.
Cuba has opened the doors to investment property with the approval of a new immigration law granting residency to foreign owners and lessees of property in the country.
In October 2013, Cuba’s Gaceta Oficial (Decree 305, Articles 92 and 93) announced a revision to Cuban immigration law, which now makes foreigners who own real estate or have long-term property rentals in Cuba eligible for one-year visas renewable for an extra year.
There is a total of Three Ways for Foreign investors to buy a property in Cuba:
-Buying directly from one of the current foreigners who own a home or an apartment in Cuba. For a period during the 1990’s Cuba permitted the construction of some condominiums with apartments which could be sold to foreigners.
Those who bought during those times are now able to sell to other foreigners who are not currently residents in Cuba. This is the best way for foreigners without family ties to Cuba to invest in the Cuban Real estate market.
-Marriage to a Cuban allows the foreign citizen to become permanent resident thus being allowed by law to buy a home from local Cuban owner.
-Buying a property in the names of your Cuban spouses, family members or Cuban friends: By law, the remainder of the market is only open to Cubans on the island or those Cubans living temporarily abroad. Many foreigners and Cubans emigrants living abroad are also buying properties in the names of family members or friends.