Challenging the cadastral value of land plots and real estate
From 1 January 2027, the cadastral value of land is set to rise, bringing higher land tax and rent.
In 2026, a state cadastral valuation of land plots is being conducted throughout Russia based on their status as of 1 January 2026. The results will apply from 1 January 2027. Draft valuation reports have already been published, and for many property owners they point to a substantial increase in mandatory payments. Analysts who reviewed Moscow’s draft report estimate that the aggregate cadastral value of land in the city will rise by about one third, while the increase for some categories of plots will be much higher. The value of plots for low-rise development and gardening in New Moscow is expected to almost double, while that of plots used for petrol stations may nearly triple. In the Moscow Region, the average cadastral value of land is expected to rise by more than half, according to preliminary valuation results.
How an increase in cadastral value affects payments
Cadastral value is used to calculate land tax, property tax for companies and individuals, rent for state and municipal land, the purchase price of a plot, and fees for changing its permitted use. Any increase therefore directly adds to the owner’s annual financial burden.
Why cadastral values are often overstated
State cadastral valuations use mass appraisal methods under which a budgetary institution determines the value of hundreds of thousands of properties at the same time. This approach takes account of the individual features of a particular plot or building—such as access conditions, protected zones, lack of utilities and encumbrances—only to a limited extent. Valuers also often rely on asking prices, which are generally higher than prices in completed transactions.
The following circumstances may indicate that a cadastral value is overstated:
- The cadastral value is materially higher than the price the property could achieve on the open market, or has risen sharply since the previous valuation round.
- The Unified State Register of Real Estate or valuation report contains incorrect information about the area, permitted use, land category, designation or year of construction, or fails to account for physical depreciation.
- The property has been assigned to the wrong market segment—for example, a warehouse complex has been valued using retail property indicators.
- Restrictions on the property’s use have not been taken into account, including protected zones, easements, a lack of utilities or the absence of access roads.
Moscow City Court practice in 2025
We refer to the cases below to illustrate the established approach and the factors that can determine the outcome of similar disputes. The judgments have been published and can be found by their case numbers.
Tenant secured a RUB 225 million reduction in a plot’s cadastral value
RUB 910.8m → RUB 685.6m (−25%)
A company leased a plot whose rent was calculated by reference to its cadastral value. The court rejected the city’s objections to the tenant’s right to challenge the value and determined the plot’s value on the basis of a court-appointed expert appraisal.
However, the expert found that the claimant’s report, which valued the plot at RUB 417.6 million, did not comply with federal valuation standards. As the court considered the final difference acceptable for a mass valuation, the claimant was ordered to bear the expert appraisal costs.
Takeaway. A tenant may seek to reduce its payments, but the quality of the valuation report and the strength of the case determine the costs the dispute may entail.
A 7% reduction cut the taxable value by RUB 839 million
RUB 11.68bn → RUB 10.84bn (−7.2%)
The owner of a non-residential building challenged its cadastral value, which formed the basis for corporate property tax. The claimant sought a reduction to RUB 7.7 billion, but the court-appointed expert found its report unreliable, and the court determined the value on the basis of the expert’s findings.
Even so, the building’s taxable value fell by more than RUB 839 million. Because the difference was relatively small in percentage terms, the claimant was also ordered to bear the expert appraisal costs.
Takeaway. Even a modest reduction can produce substantial savings for a high-value property. Before starting a dispute, however, the expected result must be weighed against the cost of the report and the expert appraisal.
The court-appointed expert appraisal determined the outcome
RUB 336.0m → RUB 294.1m (−12.5%)
The cadastral value of a building with a floor area of about 1,600 sq. m was reduced by RUB 42 million. The court relied on the findings of a court-appointed valuation expert and treated the date the claim was filed as the date the challenge was brought.
Takeaway. In disputes of this kind, the court-appointed expert effectively determines the final value. The questions put to the expert, the choice of expert organisation and a detailed review of the expert report therefore matter greatly.
Legal routes to review a cadastral value
The law provides several ways to seek a review. The appropriate route depends on the stage of the valuation and the nature of the error.
| Route | When it applies | Time limit |
|---|---|---|
| Comments on the draft valuation report | Errors in the property’s characteristics identified before the results are approved | 30 calendar days from publication of the draft report |
| Correction of errors (Article 21 of Federal Law No. 237-FZ) | Technical or methodological errors made by the budgetary institution | Throughout the period in which the cadastral value applies |
| Setting the cadastral value at market value (Article 22.1 of Federal Law No. 237-FZ) | The cadastral value exceeds the market value | Six months from the valuation date specified in the market value report |
| Court challenge (Chapter 25 of the Russian Code of Administrative Procedure) | The budgetary institution has refused the application | Three months from the institution’s decision |
Why it makes sense to start now
Where a rights holder applies to have the cadastral value set at market value, the revised value applies from 1 January of the year in which the application is filed. The application must be filed within six months of the date as of which the valuer determined the market value. It is therefore advisable to prepare a market value report as of 1 January 2027 and submit the application to the budgetary institution by the end of June 2027. This would allow the lower value to be used for tax and rent payments for the whole of 2027.
In practice, six months is a short period: the valuation report must be reviewed, errors identified, a valuer engaged and a market value report prepared that will withstand scrutiny by the budgetary institution and, potentially, a court-appointed expert. A preliminary review should therefore be carried out well in advance, before the new values appear in tax notices and rent calculations. The cadastral value of buildings, premises and structures may be challenged throughout the period in which it applies, under the same rules.
How we work
- Initial assessment. Using the cadastral number, we compare the property’s cadastral value with market prices and estimate potential savings on tax or rent. If a challenge is not economically justified, we will say so directly.
- Review of the cadastral valuation report. We examine the report on the state cadastral valuation and identify errors in the property’s characteristics, market segment, coefficients applied and comparable properties selected.
- Market value report. We engage a valuer and carry out a legal review of the report before filing the application, as defects in valuation reports are a frequent reason for refusals and for claimants being ordered to pay expert appraisal costs.
- Application to the budgetary institution. We prepare and file the application, assist with its consideration and respond to the institution’s requests.
- Court proceedings. If the application is refused, we challenge the decision in court, seek a court-appointed valuation expert, formulate questions for the expert and analyse the expert report.
- Recalculation of payments. Once the new value is established, we assist with recalculating tax and rent and recovering any overpayments.
Who we represent
We represent owners of retail, office, warehouse and industrial property; developers and owners of plots intended for construction; agricultural producers and other land users; and tenants of state and municipal land whose rent is calculated by reference to cadastral value.
Frequently asked questions
Can a tenant challenge the cadastral value?
Yes, if the amount of rent or another tenant obligation depends on it, as Moscow City Court practice confirms. Since 2026, however, a tenant’s application must be accompanied by the property owner’s written consent. We address this issue at the initial stage.
Do we have to go to court?
The application is first considered by a budgetary institution. If the report is properly prepared, the matter can often be resolved at this stage. Court proceedings are needed only if the application is refused.
What documents do we need to start?
The property’s cadastral number is enough for an initial assessment. The latest tax notice or lease agreement will allow us to estimate potential savings straight away.
The cadastral value figures are based on materials published by RIA Real Estate on 2 October 2026 and preliminary state cadastral valuation results in the Moscow Region.