Housing taxes will rise in Moscow

The cadastral value of housing in Moscow in 2022 will grow by 21 percent

Muscovites will pay more for apartments and houses, year, the cadastral value of housing in the capital will increase by an average of 21 percent. This was announced by the head of the Department of City Property Maxim Gaman, his words are quoted on the official website of the mayor and the city government.

The Moscow authorities have assessed 7 million real estate objects, including more than 342 thousand land plots. Taking into account the new cadastral value, the property tax and land tax will be calculated, as well as payments for city real estate. The cadastral valuation entered into force on January 1, 2022. The current real estate appraisal has been valid since 2018.

“Based on the results of the cadastral valuation, from January 1, 2022, the cadastral value of residential real estate will grow by an average of 21 percent. This is due to the sharp rise in apartment prices, which in 2020 amounted to about 40 percent. As for commercial properties (offices, retail and other non-residential buildings and premises), they will rise in price in cadastral terms by 4-8 percent with the growth of market indicators in the range of 8-11 percent, “explained Maxim Gaman.

Determination of the cadastral value of housing is also necessary to determine the amount of rent and prices for the sale of land. In addition, based on this estimate, the amount of administrative fines for the misuse of real estate objects is calculated, as well as fees for changing the type of permitted use of a land plot.

Dmitry Taganov, head of the INKOM-Real Estate analytical center, believes that prices for new buildings in Moscow have reached a certain limit, and now the demand will slow down. Nevertheless, the center expects a slow growth in the cost of housing until the end of the year. According to the Est-a-Tet real estate agency, in the third quarter of 2021, the demand for apartments in new buildings in Moscow has already decreased and amounted to 869 thousand square meters. About the same amount of Muscovites bought in the same period 2018-2019.