The Cadastral Value Appears Significantly Overstated
The value in the EGRN differs materially from the price at which a comparable property can realistically be valued on the market.
REAL ESTATE • VALUATION • EGRN
Reduction of Cadastral Value
We determine whether the cadastral value of a land plot, building or premises corresponds to its market value. If a review is economically justified, we arrange the valuation, review the report and support the procedure for establishing the cadastral value at the market value.
We separately review errors in the property characteristics: in some situations, the issue is not to change the value through a market valuation but to correct the source information used to determine it.
WHEN A REVIEW MAY BE WORTHWHILE
What Is Your Situation?
Tax Increased after a New Valuation
The cadastral value of the land plot or other real estate changed, increasing the tax burden.
Rent Depends on the Cadastral Value
A payment for state or municipal real estate or land is calculated using the cadastral value.
The Cadastral Value Affects the Purchase Price
The value is used in relations with a public owner, and it is necessary to assess the possible economic effect of reviewing it.
The Property Characteristics Contain Errors
The area, designated use, permitted use, location or other source information may not correspond to the actual situation.
The Property Is Non-Standard
Individual characteristics of the land, building or premises may not have been sufficiently reflected in the mass state cadastral valuation.
Establishment of Market Value Was Refused
It is necessary to review the reasons given by the budgetary institution, the quality of the appraiser’s report and the grounds for a court challenge.
The Dispute Concerns Cadastral Value from Previous Years
It is necessary to determine separately whether the value is archived and whether it can still be reviewed in light of the purpose of the application and the applicable regulation.
Nikolay NemkovManaging Partner, Konsultant Law Firm
Managing Partner’s Commentary
Nikolay Nemkov on Cadastral Value
Why an expensive valuation report should be commissioned only after reviewing the cadastral information, the expected market value and the economic effect of the procedure.
Key Points
- 01What is stated in the EGRN
- 02How much the cadastral value differs from the market
- 03Whether the procedure is justified in light of its purpose and costs
APPROACH
Economics First. Challenge Second.
The fact that an owner considers a cadastral value overstated does not itself mean that a review procedure should be started. First, the expected market value of the property must be determined, the payments for which the cadastral value is used must be identified, and the potential effect compared with the costs of valuation and legal support.
01
Current Value
We review the EGRN information, the date as of which the cadastral value was determined and the property characteristics.
02
Reason for the Difference
We determine whether the difference results from the mass valuation or from incorrect or incomplete source information about the property.
03
Market Benchmark
We estimate a preliminary range of market value and determine whether a full report by an independent appraiser is required.
04
Economic Effect
We compare the expected result of changing the value with the costs and purpose of the procedure — taxes, rent, purchase price or another legal objective.
WHAT WE DO
What Our Work on Cadastral Value Includes
Review the Property Information
We review the cadastral number, current value, property characteristics and EGRN information.
Determine the Purpose of the Review
We clarify why the cadastral value is being used and what financial or legal result the owner or other interested person seeks.
Review the Source Data
We examine the area, designated use, type of permitted use, location and other characteristics that may have affected the valuation result.
Arrange a Market Valuation
Where there is an economic rationale, we determine the valuation requirements and instruct an independent appraiser.
Review the Appraiser’s Report
We analyze the property description, source information, comparable properties, adjustments, calculations and the date as of which the market value was determined.
Prepare the Application
We prepare an application to establish the cadastral value at the market value and the required supporting documents for the applicable procedure.
Support the Review and Dispute
We work with comments from the budgetary institution, analyze the decision and, where there are grounds, prepare an administrative court challenge.
TWO DIFFERENT SCENARIOS
Incorrect Data or Market Value
Error in the Source Information
Correct the Cause of the Calculation
If the cadastral value was determined using incorrect or incomplete property characteristics, the procedure for correcting the error in the information and state cadastral valuation results should be reviewed first.
Market Value Is Lower
Establish the Value at the Market Value
If the property characteristics are correct but its individual market value differs materially from the mass cadastral valuation, the procedure for establishing the cadastral value at the market value on the basis of an appraiser’s report is used.
These are different legal mechanisms. We choose the procedure after reviewing the documents and the reason for the difference.
PROPERTIES
Which Types of Real Estate Can Be Reviewed
Land Plots
Buildings and Structures
Residential and Non-Residential Premises
Parking Spaces
Unfinished Construction
PRACTICE
Results in Real Cases
−4.6 million RUB
Reduced the Cadastral Value of Land by Almost 24%
The cadastral value of the company’s land plot was RUB 19.17 million. In court, a market value of RUB 14.58 million was established. The Krasnoyarsk Regional Court granted the claim and set the cadastral value at the market value.
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Konsultant Law Firm
The firm has been practicing since 2007. We handle litigation and complex legal matters for businesses in Krasnoyarsk, Moscow and other regions of Russia.
Since 2007
in legal practice
1,000+
court proceedings
Across Russia
Krasnoyarsk • Moscow • other regions
A Lower Value Does Not Always Mean the Dispute Is Economically Worthwhile
Even if a preliminary market value is below the cadastral value, the procedure is worthwhile only where changing the value creates a material economic or legal effect for the specific owner or rights holder.
We therefore first compare the difference in value with the purpose of the review and the expected costs. This helps avoid spending money on a full appraiser’s report and court work where the result would not be economically justified.
How We Start Working on the Matter
01We Receive the Cadastral Number
Using it, we review the property, the current cadastral value and the principal EGRN information.
02We Determine the Purpose
Tax, rent, purchase price, another payment or the need to correct a discrepancy between the cadastral value and the actual market.
03We Assess the Prospects
We review the source characteristics of the property and make a preliminary comparison between the cadastral value and the market level.
04If There Is a Rationale, We Start the Procedure
We arrange the valuation, review the report and prepare the documents for establishing the cadastral value at the market value.
MANAGING PARTNER
Konsultant Law Firm Lawyers
Managing Partner, Konsultant Law Firm
Nikolay Nemkov
More than 20 years of practice in complex property and corporate disputes. Practicing insolvency practitioner.
PROCEDURE
The Appraiser’s Report Is Only Part of the Work
Under the current Article 22.1 of Federal Law No. 237-FZ, an application to establish cadastral value at market value is submitted to the authorized budgetary institution of the constituent entity of the Russian Federation or through another submission channel provided by law. An electronic market valuation report for the property is attached to the application.
Under the general procedure, the application must be filed within six months from the date as of which the market valuation was carried out and which is stated in the report. The valuation date and preparation of the supporting documents therefore need to be coordinated in advance.
The budgetary institution reviews the application within thirty calendar days. A decision refusing to establish the cadastral value at the market value may be challenged in court through administrative court proceedings.
IMPORTANT • JULY 2026
The Constitutional Court of the Russian Federation Changed the Approach to Archived Cadastral Value
On July 14, 2026, the Constitutional Court of the Russian Federation identified a problem in which a good-faith taxpayer — an individual who is not an individual entrepreneur — could lose the ability to challenge an archived cadastral value even though that value continued to be used to calculate land tax or property tax for previous periods.
Until the legislation is amended, the Constitutional Court established a temporary procedure: where the conditions specified in the ruling are met, such a taxpayer may apply to the authorized budgetary institution within one year from the date when the taxpayer learned or should have learned of the tax consequences of the archived cadastral value.
This is a special situation for a specific category of individuals and previous tax periods. It does not replace the general procedure under Article 22.1 and requires a separate review of the circumstances of the particular taxpayer.
Questions about Reduction of Cadastral Value
Can I simply ask for the cadastral value to be reduced?
No. There must be a legal basis for changing the cadastral value. If the issue results from an error in the source information or calculation, the procedure for correcting that error is reviewed. If the property characteristics are correct but its market value is below the cadastral value, the procedure for establishing the cadastral value at the market value on the basis of an appraiser’s report may apply.
Where is an application to establish cadastral value at market value currently submitted?
Under the current Article 22.1 of Federal Law No. 237-FZ, the application is submitted to the budgetary institution of the constituent entity of the Russian Federation authorized to determine cadastral value, or by another method provided by law, including through a multifunctional center and available electronic submission channels.
How long can a market valuation report be used for this procedure?
Under the general procedure, an application to establish cadastral value at market value may be filed within six months from the date as of which the property’s market valuation was conducted and which is stated in the report. A report therefore should not be commissioned and then left unused for an indefinite period.
How long is the application reviewed?
Under Article 22.1 of the Law on State Cadastral Valuation, an application to establish cadastral value at market value is reviewed by the budgetary institution within thirty calendar days from receipt. The law also provides separate periods for notices, return of an application without consideration and delivery of the adopted decision.
What should be done if the budgetary institution refuses the application?
All reasons for the refusal should first be reviewed. The law provides for refusal, in particular, where information is incomplete or inaccurate, calculation or other errors affected the market-valuation result, or the valuation report violates valuation-law requirements. The budgetary institution’s decision may be challenged in court through administrative court proceedings; a claim to establish the cadastral value at the market value may be brought at the same time.
What can a reduction of cadastral value affect?
That depends on the property and legal relationship. Cadastral value may be used to calculate land tax and property tax and, in certain cases, to determine rent, a purchase price or other payments. Before starting the procedure, it is necessary to determine where the value of the specific property is used and what effect changing it would produce.
Can an old, already archived cadastral value be challenged in 2026?
In certain cases, yes. On July 14, 2026, the Constitutional Court of the Russian Federation established temporary special regulation for good-faith taxpayers — individuals who are not individual entrepreneurs — where an archived cadastral value continues to be used to calculate land tax or property tax for previous periods. The possibility of applying depends on when the person learned of the tax consequences, the relevant tax periods and other conditions of the ruling. The general procedure under Article 22.1 of Federal Law No. 237-FZ continues to apply to ordinary review of a current cadastral value.
We Will Check Whether Reducing the Value Makes Sense
State the property’s cadastral number, current cadastral value and the purpose of the review. If you know the approximate market value or already have an appraiser’s report, include that in the description.