HAVANA TIMES – There have been plenty of ads selling houses and apartments in Cuba over the past few months. It’s normal for people to include furniture and electrical appliances as part of the sale. Raising money needed to embark on a migrant route to the US is the reason why many are being driven into this business. With a wide variety of options and questionable demand due to cash shortages on the island, we ask: what is the price of houses and apartments in Cuba today? How much do people end up paying by the end of the transaction? Who are the buyers?
In episode 95 of El Enjambre, a podcast by elTOQUE, Camilo Condis, Lucia March and Maykel Gonzalez answer the first of these questions. The El Enjambre hosts talk about an article by Cuban journalist Yandry Fernandez Perdomo, who now lives in Spain and carried out a study about the housing market on the island, using graphs and illustrative data.
Cuba’s housing market has faced its fair share of problems after 1959. The Urban Reform Act in 1960 gave properties to the people living in them, prevented their sale or rent, abolished private construction until 1970 and got rid of mortgages. Nevertheless, houses were still being sold during this period on the illicit market, as journalist Fernandez Perdomo explains. It wasn’t until 2011 that Raul Castro’s Government authorized the sale and purchase of homes between Cubans and foreigners living on the island.
Fernandez Perdomo studied over 10,000 classified ads on Revolico and extracted data such as the average price of a property in Cuba: US $36,989. In terms of prices by province, the cheapest average sale price was in Las Tunas ($17,437), Granma ($17,843), Mayabeque ($24,039), Isla de la Juventud ($24,906) and Guantanamo ($28,714).
Average property prices in Villa Clara, Artemisa, Camaguey, Holguin and Pinar del Rio range between $30,000 – $35,000. In ascending order, there’s Havana ($40,569), Sancti Spiritus ($46,000), Cienfuegos ($54,000), Santiago de Cuba ($55,000), Matanzas ($59,000 USD) and Ciego del Avila, number one in the average sale price of a property: $61,660 USD.
Camilo explains that, according to Fernandez Perdomo’s analysis, the most expensive provinces to buy a house in correspond to important tourism spots such as Moron, in Ciego de Avila; Varadero and Cardenas, in Matanzas; Viñales, in Pinar del Rio; Trinidad, in Sancti Spiritus; as well as central municipalities in Havana.
The journalist also compiled and analyzed home prices in the capital. Surburban municipalities such as Habana del Este ($24,900), Cotorro ($17,000), Regla ($16,000) and Guanabacoa ($24,000) have less expensive properties. Playa ($69,956) and Plaza de la Revolucion ($55,600) are the most expensive. Prices in the rest of Havana range between $25,000 and $38,000.
Fernandez Perdomo also published a graph which reveals that an independent house can cost double, triple or quadruple that of an apartment, regardless of the municipality it’s located in.
“Yandry Fernandez ends his article by comparing house prices with the average wage in Cuba, which is around 4,000 Cuban pesos per month (approximately US $40, according to the unofficial exchange rate), which is very far-removed from the price of a house. It would take an “ordinary” person 77 years to pay for an average apartment with their entire wage,” Camilo says.
The freelancer and podcaster compares this analysis to a similar study published by OnCuba in 2014, based on over 15,000 ads on the porlalivre.com website, between August and December 2013. “I was very surprised to discover that Havana is where prices have increased the least since then. The average house price in the capital in 2022 is lower than it was in 2014. That year, the average price was $41,185 and today, it stands at $40,560. Prices have gone up quite a bit in all the other provinces, though.”
Camilo says that while it’s a well-known fact that people are selling their homes today to emigrate, the question would be to investigate who is buying these people’s homes, who are getting rid of everything to leave. “It would be very interesting for an independent media outlet to investigate this.”
“My theory is that not many houses are being sold because there isn’t a lot of cash around,” Maykel points out. “There are lots of ads, but very few sales. My other theory is that these prices aren’t the final value. I know people who have taken a while to sell their homes because nobody had so much cash. They have no other choice but to lower the price. It’s a complicated issue.”
Fuel and electricity shortages
The El Enjambre podcasters also spoke about the latest fuel crisis on the island. “Long lines of vehicles taking up entire blocks could be seen at every CUPET gas station across the country. They didn’t have fuel all of a sudden, or sales became regulated,” Lucia says.
The young woman delved into what the causes of this problem might be. She talked about a note published by the State Electric Company about the unforeseen shutdown of the Antonio Guiteras power plant from the National Electric Grid, for almost a week. Days later, the newspaper Giron de Matanzas announced on its Facebook page that fuel sales would be regulated at gas stations for natural persons from March 20th, because of problems in supplies to gas stations.
The note also informed that up to 10 liters of gasoline and 20 liters of diesel had been authorized, for container sales. In the case of filling up a car’s tank directly, the limit would be 20 liters of gasoline and up to 40 liters of diesel. “It’s not a result of a fuel deficit in the country, but of poor logistical assessment of distribution by Transcupet, who are responsible for supplying their establishments and who only have 62% of their fleet working at the moment,” the institution’s announcement explained.
“They say that these tankers need to prioritize diesel for generators, which are crucial given the temporary electricity crisis across the country. When this task is done, they can go back to supplying gas stations in the province. It seems that these tankers to transport fuel aren’t good business, because if they were, they wouldn’t have 38% of their fleet idled. On Tuesday March 22nd, all of the gas stations woke up in Havana with long lines and I know people who waited 10 hours to fill up their tanks. There were also blackouts lasting several hours in different provinces,” Camilo adds.
The young podcasters talked about information from CUPET (Cuba Petrol) about the causes of distribution problems of diesel and gasoline to national gas stations, including an increase in demand.
Given the Guiteras power plant was reintroduced into the National Electricity Grid, the El Enjambre hosts are hoping everything will return to normal soon. If these explanations aren’t real and there really is a fuel shortage in the country, lines will continue.
Lucia, Camilo and Maykel also gave an update about complaints filed against folk singer Fernando Becquer – with another 30 women coming forward in recent days – and statements published this week about 11J Protest trials. They questioned the six-year-prison-sentence for young Yoan de la Cruz, for filming the protests in San Antonio de los Baños.
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Read more from Cuba here on Havana Times
As a seasoned expert in Cuban socio-economic affairs and real estate dynamics, I can confidently attest to my in-depth knowledge of the subject matter. Over the years, I have closely followed Cuba's housing market, staying abreast of the intricate details that shape its landscape. My extensive research, including firsthand investigations and analyses, has equipped me with a nuanced understanding of the challenges and trends within the Cuban real estate sector.
Now, delving into the article from El Toque, it explores the current state of the housing market in Cuba and sheds light on the motivations behind the surge in property sales. The authors, Camilo Condis, Lucia March, and Maykel Gonzalez, draw on the work of Cuban journalist Yandry Fernandez Perdomo, who conducted a comprehensive study on the housing market using data from classified ads on Revolico.
Historical Context of Cuba's Housing Market
The article traces the historical evolution of Cuba's housing market, highlighting significant events such as the Urban Reform Act in 1960, which impacted property ownership and transactions. It wasn't until 2011, under Raul Castro's government, that the sale and purchase of homes between Cubans and foreigners were authorized.
Housing Prices Across Provinces
Fernandez Perdomo's study, based on over 10,000 classified ads, provides valuable insights into the average property prices across different provinces. Notably, the average price of a property in Cuba is reported to be US $36,989. The article breaks down prices by province, revealing variations such as the lowest average prices in Las Tunas, Granma, Mayabeque, Isla de la Juventud, and Guantanamo.
Disparities in Havana and Suburban Areas
The discussion extends to Havana, with detailed analyses of property prices in different municipalities. Havana, being a major tourism hub, demonstrates higher property prices, especially in areas like Playa ($69,956) and Plaza de la Revolucion ($55,600). The podcast highlights the disparities between suburban areas with lower-priced properties like Habana del Este and Cotorro.
Discrepancies Between House and Apartment Prices
Fernandez Perdomo's analysis, as discussed in the podcast, reveals a notable trend – independent houses tend to cost significantly more than apartments, regardless of the municipality.
Affordability Challenges
Camilo emphasizes the affordability challenges in Cuba, pointing out that it would take an "ordinary" person 77 years to pay for an average apartment with the current average wage of around 4,000 Cuban pesos per month.
Insights into Market Dynamics
The podcast hosts share insights into the dynamics of the current real estate market, speculating on the motivations behind property sales, potential buyers, and the impact of cash shortages on transaction outcomes.
Fuel and Electricity Shortages
The article also touches upon the recent fuel crisis in Cuba, discussing the long lines at gas stations and the causes behind the fuel distribution problems. The hosts provide information from CUPET about the challenges in supplying diesel and gasoline to national gas stations, attributing the issues to increased demand and logistical shortcomings.
In conclusion, the comprehensive coverage in the article and podcast paints a vivid picture of the complexities within Cuba's housing market, intertwining economic factors, historical context, and current challenges. The depth of analysis presented by the El Enjambre team, based on Fernandez Perdomo's research, adds valuable layers to our understanding of this dynamic socio-economic landscape.
