Residential Real Estate Transactions - Cuba

In Cuba, the market segment Residential Real Estate Transactions market is expected to witness significant growth.
It is projected that by 2024, the transaction value of this market will reach a staggering US$1.80bn.
Looking ahead, the market is anticipated to continue expanding at an annual growth rate (CAGR 2024-2029) of 4.38%.
As a result, by 2029, the market volume is estimated to reach a remarkable US$2.24bn.
Despite the recent economic reforms in Cuba, the residential real estate market remains highly regulated and limited to Cuban citizens only.

Definition:

Residential real estate transactions refer to the buying, selling, or transfer of ownership of residential properties such as single-family homes, condominiums, townhouses, and apartments. These transactions involve a number of steps and parties, including buyers, sellers, real estate agents, attorneys, lenders, and title companies.

Additional information:

The KPIs covered in this market are the real estate transactions revenue and the average revenue transaction value.

Overall revenue generated by residential real estate transactions

Commercial real estate transactions
Revenue of real estate agencies
Revenue of construction companies

The Residential Real Estate Transactions market in Cuba has been experiencing significant growth in recent years.

Customer preferences: Customers in the Residential Real Estate Transactions market in Cuba have shown a strong preference for properties in urban areas, particularly in Havana. This is due to the availability of amenities such as schools, hospitals, and shopping centers, as well as the proximity to job opportunities. Additionally, customers are increasingly looking for properties with modern amenities and high-quality construction.

Trends in the market: One of the key trends in the Residential Real Estate Transactions market in Cuba is the increasing demand for rental properties. This is driven by a growing number of tourists visiting the country and a rise in the number of expatriates living in Cuba. As a result, investors are capitalizing on this trend by purchasing properties for rental purposes, particularly in popular tourist destinations. Another trend in the market is the emergence of real estate agencies and online platforms that facilitate property transactions. These platforms provide a convenient and efficient way for buyers and sellers to connect, reducing the time and effort involved in the buying and selling process. This has contributed to the overall growth of the market and has made it more accessible to a wider range of customers.

Local special circumstances: The Residential Real Estate Transactions market in Cuba is unique due to the country's socialist economic system and government regulations. The government plays a significant role in the real estate market, with restrictions on property ownership and foreign investment. However, recent economic reforms have opened up opportunities for private ownership and foreign investment, leading to increased activity in the market.

Underlying macroeconomic factors: The growth of the Residential Real Estate Transactions market in Cuba can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced a steady increase in tourism, which has boosted demand for rental properties. Additionally, the government's economic reforms have created a more favorable investment climate, attracting both domestic and foreign investors to the real estate market. Furthermore, the Cuban government's focus on infrastructure development has contributed to the growth of the market. Investments in transportation, healthcare, and education have made urban areas more attractive to buyers, leading to increased demand for residential properties. In conclusion, the Residential Real Estate Transactions market in Cuba is experiencing significant growth due to customer preferences for urban properties, the increasing demand for rental properties, the emergence of real estate agencies and online platforms, as well as the unique local circumstances and underlying macroeconomic factors. As the Cuban government continues to implement economic reforms and invest in infrastructure development, the market is expected to further expand in the coming years.

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

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.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Transactions - Cuba

Volume

Analyst Opinion

Transaction Value

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Transactions - Cuba

In-Scope

Out-Of-Scope

Real Estate

Related markets:

Residential Real Estate: market data & analysis

Volume

Analyst Opinion

Transaction Value

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts