Castro Allows Cubans to Sell Property as State Control Eases

Castro Allows Cubans to Sell Property as State Control Eases
November 03, 2011, 3:09 PM EDT
By Eric Sabo

Nov. 3 (Bloomberg) -- Cuba's communist government lifted a half-century
ban on residents buying and selling property as President Raul Castro
eases state control over the economy.

For the first time since the country's 1959 revolution, Cubans will be
able to own their main residence and one in the country, state-run
Granma newspaper reported today on its website. The changes were already
approved by the National Assembly and take effect Nov. 10.

Easing of restriction on property ownership may spur real estate
development that is needed to overcome a housing shortage that affects
nearly 1 million people, said Jose Manuel Palli, the director of
Miami-based U.S.-Cuba Legal Forum.

"This is an important first step," Manuel said in a phone interview.
"Cuba has needed to do this for years."

Many Cuban families live in crowded, crumbling buildings and have to
trade on the black market to move to a new home, Manuel said. Even
marriage is no way to overcome the ban on property sales, as young
couples wait for years to move into their own house and even divorced
couples live estranged under the same roof, he added.

The law will not allow Cuban exiles, who had homes confiscated after
Fidel Castro took power in 1959, to buy properties as they are not
considered residents.

Ailing Economy

Since Fidel handed power to his brother in 2006, Cuba's government has
begun to open up the economy in a bid to attract investment to the
island nation of 11.2 million. Castro last year announced plans to fire
500,000 government-employed workers, about 10 percent of the workforce,
as the slowing global economy hurts tourism and reduces the price of
nickel, the country's biggest export.

Cuba's economy grew 1.9 percent in the first half of the year and is
expected to grow 2.9 percent in 2011, Granma reported Nov. 1, citing
comments by Trade and Foreign Investment Minister Rodrigo Malmierca.

On Aug. 2, Castro said that officials would further relax rules on
self-employment and make it easier for Cubans to own cars and homes.

The change in property rules announced today will also enable Cubans or
foreigners with permanent-residence status to swap and donate
properties, the Havana-based newspaper reported.

--With assistance from Nathan Crooks in Caracas. Editors: Philip
Sanders, Joshua Goodman

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