Residential Real Estate Leases - Cuba

In 2024, the revenue of the Residential Real Estate Leases market market in Cuba is estimated to reach US$7.64bn.
Among the various segments within this market, House Leases holds the dominant position with a projected market volume of US$6.69bn in the same year.
Looking ahead, it is anticipated that the market will experience a steady annual growth rate of 2.76% from 2024 to 2029 (CAGR 2024-2029).
This growth trajectory is expected to result in a market volume of US$8.75bn by 2029.
Despite recent economic reforms, the residential real estate lease market in Cuba remains tightly controlled and limited, with high demand and low supply.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Cuba has been experiencing significant growth and development in recent years. Customer preferences have shifted towards renting properties instead of buying, leading to an increase in demand for residential real estate leases. This trend can be attributed to several factors, including changing lifestyles, economic conditions, and government policies.

Customer preferences: Customers in Cuba are increasingly opting to rent properties instead of buying due to various reasons. One of the main factors driving this preference is the changing lifestyles of the population. Younger generations are prioritizing flexibility and mobility, preferring to rent properties that offer them the freedom to move around and explore different areas. Additionally, renting provides an opportunity for individuals to experience different neighborhoods and living arrangements before committing to a long-term investment. Another factor influencing customer preferences is the economic conditions in Cuba. Owning a property can be a costly endeavor, requiring significant upfront investment and ongoing maintenance expenses. Renting, on the other hand, offers a more affordable and flexible option for individuals who may not have the financial means to purchase a property outright. This affordability factor has made residential real estate leases an attractive option for many Cubans.

Trends in the market: The Residential Real Estate Leases market in Cuba has witnessed a surge in demand in recent years. This trend can be attributed to the increasing number of tourists visiting the country. The tourism industry has experienced significant growth, leading to a higher demand for short-term rental properties. Many property owners have taken advantage of this trend by converting their homes into vacation rentals, catering to the influx of tourists. This has not only boosted the residential real estate lease market but has also contributed to the overall economic growth of the country.

Local special circumstances: Cuba's unique political and economic circumstances have also played a role in the development of the residential real estate lease market. The country has undergone significant changes in recent years, including the relaxation of certain restrictions on property ownership and rental regulations. These changes have created new opportunities for individuals to invest in residential real estate leases and have contributed to the growth of the market.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the development of the Residential Real Estate Leases market in Cuba. The country has experienced steady economic growth, which has resulted in an increase in disposable income for many individuals. This has allowed more people to consider renting properties as a viable option for their housing needs. Furthermore, government policies have also played a role in shaping the market. The Cuban government has implemented measures to encourage foreign investment in the real estate sector, making it easier for individuals and companies to acquire properties for leasing purposes. These policies have attracted both domestic and international investors, further driving the growth of the residential real estate lease market. In conclusion, the Residential Real Estate Leases market in Cuba has been experiencing significant growth and development. Changing customer preferences, driven by shifting lifestyles and economic conditions, have led to an increase in demand for residential real estate leases. Additionally, the country's unique political and economic circumstances, along with underlying macroeconomic factors, have contributed to the growth of the market.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.

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

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Residential Real Estate Leases - Cuba

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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