Residential Real Estate - Cuba

Cuba

The Residential Real Estate market market in Cuba is expected to reach a value of US$298.70bn in 2024.
Based on the projected annual growth rate of 4.47% (CAGR 2024-2029), the market volume is anticipated to reach US$371.70bn by 2029.
In terms of global comparison, China is projected to generate the highest Real Estate value, amounting to US$112.9tn in 2024.
Cuba's residential real estate market is experiencing a surge in demand from international investors due to the country's recent economic reforms.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Cuba is experiencing significant growth and development in recent years.

Customer preferences: Customers in Cuba are increasingly looking for affordable and comfortable housing options. With the recent economic reforms and the opening up of the country, there is a growing demand for residential properties. Many Cubans are looking to invest in real estate as a means of securing their financial future. Additionally, there is also a growing interest from foreign investors who see the potential in the Cuban market.

Trends in the market: One of the key trends in the Cuban Residential Real Estate market is the increase in property prices. As the demand for housing continues to rise, the prices of residential properties have also been steadily increasing. This trend is driven by a combination of factors, including the limited supply of housing and the growing interest from both domestic and foreign investors. Another trend in the market is the development of luxury properties. With the increase in tourism and foreign investment, there is a growing demand for high-end residential properties. Developers are responding to this demand by building luxury condominiums and villas that cater to the needs and preferences of affluent buyers.

Local special circumstances: One of the unique aspects of the Cuban Residential Real Estate market is the government's role in property ownership. The government owns the majority of the housing stock in Cuba, and individuals can only buy and sell properties through a government-run agency. This has created a complex and regulated market, which can be challenging for both buyers and sellers.

Underlying macroeconomic factors: The development of the Residential Real Estate market in Cuba is also influenced by several macroeconomic factors. The country's economic reforms, which began in 2008, have led to an increase in private sector activity and foreign investment. This has contributed to the growth of the real estate market, as more people are able to afford and invest in properties. Additionally, the growth of the tourism industry in Cuba has also had a positive impact on the Residential Real Estate market. The increase in tourist arrivals has created a demand for short-term rental properties, such as vacation homes and apartments. This has provided opportunities for property owners to generate income through tourism-related activities. In conclusion, the Residential Real Estate market in Cuba is experiencing significant growth and development, driven by customer preferences for affordable and comfortable housing options, the increase in property prices, the development of luxury properties, the government's role in property ownership, and underlying macroeconomic factors such as economic reforms and the growth of the tourism industry.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. 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.