Property Futures

Real Estate News, Reviews and Investment

The 99-year lease in Cuba

News: Cuba agrees to foreign investment with benefits galore.

Overseas investors have always endeavored to convince the government of Cuba that the only way for Cuba to move ahead is by the involvement of investors in its economic development. Finally, 99-year leases have been granted to foreign investors on government land.

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Cuba already permits leases of state land up to 50 years which can be increased a further 25 years. Investors have been reluctant to proceed along these lines and have clamored for the 99-year lease. The longer lease will lower interest rates on international mortgages which will make it easier for investors to obtain loans for purchasing real estate.

Beneficiaries from the 99-year lease grant

The first benefactor from the grant will be Cuba itself when it hosts the level of development that will emerge from the granting of the leases. Its real estate will witness a boost never experienced before.  Second in line will be the investors and third, the tourist arrivals who will savor the delights of real estate development.

 

Developers

  • Leisure Canada is delighted with the change and has its sights set on building hotels, villas and two golf courses on the Jibocoa beach, 40 miles from Havana.
  • In addition to the Jibocoa project, the company also proposes to build a hotel in Maramar, not far from Havana next year while another project is in the pipeline for Cayo Largo, a cay off Cuba’s southern coast.
  • It has been rumored that there are several real estate investors in Canada, Europe and Asia who have set their sights on the Cuban shores to cash in on the escalating number of tourists visiting Cuba. There are also speculations that relations between the country and the U.S. will improve and this will prove an additional catalyst for long term real estate development.
  • The demand for international-standard golf courses on the island has sky-rocketed and developers are eager to get involved. The tourism Ministry says it would like to see 10 more of these golf courses built.
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