Cuba's black-market housing trade to go legit:
Castro vows to end law prohibiting sale of private property
updated 7/24/2011 5:30:26 PM ET
By Peter Orsi
Each morning before the sun rises too high, Cubans gather at a shaded corner in central Havana, mingling as though at a cocktail party. The icebreaker is always
the same: "What are you offering?"
This is Cuba's informal real-estate bazaar, where a chronic housing shortage brings everyone from newlyweds to retirees together to strike deals that often involve thousands of dollars in under-the-table payments. They're breaking not just the law but communist doctrine by trading and profiting in property, and now their government is about to get in on the action.
President Raul Castro has pledged to legalize the purchase and sale of homes by the end of the year, bringing this informal market out of the shadows as part of an economic reform package under which Cuba is already letting islanders go into business for themselves in 178 designated activities, as restaurateurs, wedding planners, plumbers, carpenters.
An aboveboard housing market promises multiple benefits for the cash-strapped island: It would help ease a housing crunch, stimulate construction employment and generate badly needed tax revenue. It would attack corruption by officials who accept bribes to sign off on illicit deals, and give people options to seek peaceful resolutions to black-market disputes that occasionally erupt into violence.
It's also likely to suck up more hard currency from Cubans abroad who can be counted on to send their families cash to buy, expand and remodel homes, especially since President Barack Obama relaxed the 50-year-old economic embargo to allow unlimited remittances by Cuban-Americans.
"All these things are tied in," said Sergio Diaz-Briquets, a U.S.-based demography expert. "They want expatriate Cubans to contribute money to the Cuban state, and this is one big incentive for people who want to help their families."
But few changes are likely to be as complex and hard to implement as real estate reform.
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