It is crucial for buyers, sellers, and real estate agents to comprehend the cadastral value of land lots. The government determines this value, which is important for land transactions, property taxes, and urban development plans. These aspects can be greatly impacted by recent changes in cadastral valuation, which can have an impact on everyone from large-scale developers to individual homeowners.
These modifications may result from a number of things, including updated land use regulations, new laws, and changes in the economy. Keeping up with these changes can be difficult for many, but it’s important because they affect long-term planning and financial decisions. Remembering that cadastral value adjustments are important is important whether you intend to purchase or sell real estate, or you just need to know more about your tax responsibilities.
We’ll look at what motivates these changes, how they’re determined, and what you need know to stay afloat in this changing environment in this article. We’ll simplify the intricate procedure and offer useful advice to enable you to make well-informed choices about your real estate investments. Together, we will explore the realm of cadastral values and identify the major variables that may impact the value of your land.
| Year | Cadastral Value Change |
| 2020 | Land values remained stable due to economic uncertainties. |
| 2021 | Slight increase in values as market conditions began to improve. |
| 2022 | Significant rise in values driven by high demand for property. |
| 2023 | Values leveled off as market reached a new equilibrium. |
| 2024 | Potential decrease expected due to economic slowdown and policy changes. |
Since it has a direct impact on market value and property taxes, property owners, developers, and prospective purchasers must understand changes in the cadastral value of land plots. In order to help readers navigate and adjust to these shifts and make wise decisions about land ownership and real estate investment, this article examines the variables that impact these changes, including regional development plans, governmental policies, and economic conditions.
- How often does it change??
- Revaluation of land for previous years
- Forecast
- What does the adjustment affect?
- How to change if rights are violated
- Where to contact?
- What documents are needed to revise the value?
- Is there a tax increase planned??
- Useful video
- Video on the topic
- CHANGES IN CADASTRAL VALUE
- Challenging the cadastral value
- How to find out the change in the cadastral value of land plots
- Changes in the rules for cadastral valuation of real estate
- Challenging the cadastral value and rental payments of land plots
- Changes in the cadastral value of land plots in 2024. Point of view.
- Challenging the cadastral value. Why market valuation no longer works?
- Reduction in the cadastral value of a land plot
How often does it change??
Different categories of land have different values for cadastral value indicators, primarily due to differences in their intended use or usefulness.
Plot costs for specific categories are updated on a regular basis. This frequently happens as a result of key indicators changing over time, which has a big effect on how much it costs.
Generally speaking, the State Real Estate Cadastre sets the terms, while Federal laws control the revaluation process.
The process of cadastral value revaluation is completed within specific time frames.
The region in which the site is registered is the primary consideration when updating prices in this scenario, with a maximum period of five years and a minimum of two years.
The cadastral value revision process may start early in certain circumstances.
Specifically, these situations could be:
- Changing the area of a plot of land towards decreasing or increasing;
- Carrying out land surveying;
- Changing the assignment of parcels. For example, the conversion from land for growing crops to plots for individual residential construction automatically increases the price;
- Commissioning of a facility built on a specific plot of land. As a rule, such actions significantly increase the price of the plot;
- With significant development of infrastructure around the land plot, since the presence of hospitals, schools, kindergartens and other facilities in close proximity to them significantly increases its value;
- Changes in indicators at current market prices.
Revaluation of land for previous years
In 2014, there was a significant land revaluation that produced results so good that the calculated indicator in certain regions was much higher than the plots’ market value.
Due to this circumstance, the owners of numerous plots, who disagreed with this fact and thought the increase was unjustified, filed numerous lawsuits to contest the value determined by the state.
The modifications to the laws that went into effect in December 2016 resulted in a notable increase in indicators for all categories of land plots, which had an equally significant impact on the cadastral value.
Forecast
The growth of cadastral value has been halted for a while; the Federal Law No. 360, which was adopted on July 3, 2016, has amendments that are currently in effect in all regions. The law will not be revised until January 1, 2020.
Plot prices will be adjusted at the conclusion of this term, but in compliance with Federal Law No. 237, "On State Cadastral Valuation," independent budgetary institutions will oversee this process, which will be overseen by Rosreestr.
What does the adjustment affect?
The following factors are significantly impacted by cadastral value:
- Calculation of payment for land lease under certain conditions;
- The amount of land tax, which is determined as a percentage of the cadastral value.
The effect on tax computation is the most important in this instance because, with the rare exception of preferential groups, practically all land plot owners are required to make these payments to the national budget.
The total cost of the plot is calculated by multiplying the land area by an indicator unit, using the cadastral value of one square meter of land as the basis.
In addition, the tax is computed as a percentage based on the specific category of land, with an average rate of 0.3% that is subject to large upward and downward fluctuations.
How to change if rights are violated
Each land plot owner has the chance to contest the established value in the event of a notable price increase.
Prior to contesting a price, you must have good reason to do so.
It is important to realize that the cadastral value is established using certain criteria, such as the plot’s purpose, location, real estate attributes, and market fluctuations.
The landowner has the right to contest if the cadastral value of a plot of land has changed and any relevant factors were overlooked or the data is inaccurate.
Where to contact?
There are currently two methods available for changing the cadastral value in private.
- Administrative method. In this case, an application is sent to Rosreestr from the direct owner of the land plot.
- Judicial. Going to court is possible only after there has been a pre-trial procedure for resolving the issue and there has been a refusal to do so by Rosreestr.
The site owner must have legitimate reasons for lowering the cadastral value when making an application, both administratively and legally. These reasons can be supported by additional investigation or by reviewing the current documentation.
What documents are needed to revise the value?
When requesting that the cadastral value list of documentation be revised, please do the following:
- Cadastral passport of a plot of land;
- Report on the market price of land;
- Certificate of ownership of land;
- A separate expert opinion if the market price differs from the cadastral price.
Is there a tax increase planned??
For many ordinary citizens, individuals, and legal entities, the amount of the annual contribution to the budget becomes a fairly large expense. Therefore, the issue of rising taxes on land plots and rising the cadastral value of land is closely related and concerning at the moment.
The selling of plots that don’t make a profit and burden their owners because they don’t make enough money to cover all of the taxes has become popular in recent years.
It is important to remember that the new tax calculation method, which uses cadastral value instead of book price, was only recently implemented. Prior to 2015, this method was used.
The amount of taxes is currently rising in tandem with the gradual shift to cadastral value calculation, and this trend is expected to continue in the near future.
Generally speaking, the tax increase is implemented gradually. From 2015 to 2020, the rate will rise by 20% annually, and as a result, the amounts owed for the property will likewise increase.
From one perspective, experts argue that augmenting the nation’s revenue is an essential step toward raising capital for the purpose of funding infrastructure development and facility modernization.
On the other hand, not every land plot owner is able to set aside this much money all the time.
Small- and medium-sized business owners, particularly those involved in agriculture, are particularly concerned about the notable rise in costs; in fact, the cadastral value has recently increased for these categories.
Useful video
Watch this fascinating video where a lawyer discusses ways to lower the cadastral value of a plot of land, as well as whether they are feasible.
Both landowners and prospective purchasers must be aware of how the cadastral value of individual land plots changes over time. Property taxes and the overall value of the land are directly impacted by this value. Keeping up with these changes can help you make better financial decisions, whether you’re thinking about managing your property expenses or selling your land.
The local development projects, market trends, and economic conditions are some of the factors that affect the cadastral value. It’s critical to monitor these factors and, if necessary, seek professional advice. Planning future investments and avoiding unforeseen financial hardships can be achieved by routinely verifying the cadastral value.
Adjusting to changes is essential in the real estate industry, which is always changing. Gaining knowledge about the factors that influence land plots’ cadastral value can help you better navigate the complex world of property ownership. With this knowledge, you can make wise decisions and keep your investments safe and profitable.
All things considered, keeping an eye on and comprehending changes in cadastral value can help you save money and make the most of your land. It makes sense to keep up to date on these changes whether you’re a seasoned real estate investor or brand-new to the industry in order to safeguard and expand your holdings.
