Commercial Real Estate - Cuba | Statista Market Forecast

Cuba's Commercial Real Estate market market is estimated to reach a value of US$98.39bn by 2024.
It is projected to experience an annual growth rate (CAGR 2024-2029) of -2.35%, leading to a market volume of US$87.35bn by 2029.
When compared globally, the United States is expected to generate the highest value in Real Estate, reaching US$25.3tn in 2024.
Despite recent economic reforms, Cuba's commercial real estate market remains largely underdeveloped due to government regulations and restrictions on foreign investment.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Cuba has been experiencing significant development in recent years. Customer preferences in the Cuban Commercial Real Estate market have been shaped by several factors. Firstly, there is a growing demand for modern and well-equipped office spaces, particularly in the capital city of Havana. Many businesses are looking for spaces that can accommodate their technological needs and provide a comfortable working environment for their employees. Additionally, there is a rising interest in commercial spaces that can cater to the tourism industry, as the country experiences an increase in international visitors. Several trends have emerged in the Cuban Commercial Real Estate market. One notable trend is the renovation and restoration of historic buildings for commercial purposes. With Cuba's rich architectural heritage, there is a growing demand for unique and aesthetically pleasing spaces that can attract both local and international businesses. Another trend is the development of mixed-use properties, which combine commercial spaces with residential units. This trend reflects the desire for convenience and accessibility, as individuals seek to live and work in the same area. The development of the Commercial Real Estate market in Cuba is also influenced by local special circumstances. One such circumstance is the government's push for economic reforms and foreign investment. As the country opens up to the global market, there is a greater need for commercial spaces to accommodate new businesses and industries. Additionally, the government's focus on promoting tourism has led to an increased demand for commercial spaces in popular tourist destinations. Underlying macroeconomic factors play a significant role in the development of the Commercial Real Estate market in Cuba. The country's economic growth and stability have attracted both domestic and international investors, who are seeking opportunities in the real estate sector. Additionally, the government's efforts to improve infrastructure and attract foreign investment have created a favorable business environment for commercial real estate development. Finally, the gradual easing of trade restrictions with other countries has opened up new opportunities for businesses, leading to an increased demand for commercial spaces. Overall, the Commercial Real Estate market in Cuba is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for modern and well-equipped office spaces, the renovation of historic buildings, and the development of mixed-use properties are all contributing to the expansion of the market. With the government's focus on economic reforms and foreign investment, as well as the country's improving infrastructure and trade relations, the Commercial Real Estate market in Cuba is expected to continue its positive trajectory in the coming years.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.