Categorized | International

Cuba Set to Eliminate Ban on Housing Market

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For years, the Cuban housing market has thrived on illegal deals involving under-the-table payments of thousands of dollars. All of that is about to change, however, as the Cuban government plans to drop its ban, and thus, entirely reform the housing market.

The planned changes for the housing market come as a result of an economic reform package that is, in many cases, a move away from traditional communist principles. The plan would make the purchase and sale of homes a legal process, thus wiping out the need for an underground housing black market, and bringing in much needed tax revenue.

The plan will create construction jobs in the country, reduce government corruption, and eliminate the risks that are so prevalent in underground housing transactions. It will also serve as a means to bring in more money from Cubans living in other countries, such as the United States.

This housing reform plan will certainly bring relief to many Cubans, as the underground market has created many problems that have sometimes resulted in violence. With no official sale records, and cases of severely overcrowded homes, there have been problems for years surrounding the lack of an official real estate market.

For those hoping that this change will lead to a more capitalistic society in Cuba, they shouldn’t get too happy just yet. President Castro has made it a point to limit home ownership to one housing unit per person, and property will only be made available to permanent residents and citizens of Cuba. The government has also yet to clarify the process of securing a home loan.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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