By the Cuba Journal staff
Jones Lang LaSalle – has warned U.S. investors to hold off on investing in Cuba, according the firm’s latest report.
The firm advised investors that even with President Barack Obama’s recent easing of sanctions, integration with Cuba will take time, even after the trade embargo is lifted.
“When the [normalization] announcement was made, the initial fervor presented the illusion of a gold rush; however, this process of integration with Cuba, even when the embargo is fully lifted, is going to take decades,” the firm said. “Before Cuba becomes an attractive investment opportunity for US companies, and particularly developers, greater transparency about laws (primarily real estate laws), upgraded logistics and banking infrastructure need to be established, and some form of ownership insurance would need to be in place. Until that day comes, businesses would be wise to seek expansions in more economically sustainable and transparent markets across the globe.”
JLL is not ruling out the possibility of fruitful future investments, especially in the tourism, hotel, and transportation industries.
The firm also explored how lessened restrictions on trade with Cuba would affect Florida.
While there is opportunity for growth and expansion in response to the demand for financial and legal offices that would address business in Cuba, the results could be detrimental for Florida’s agricultural sector, which cultivates most of the same products as Cuba’s, JLL said.
To read the full report, click here.