Cadastral value: what it means and why it does not equal the sale price

What cadastral value is and what it really represents

The cadastral value is an administrative figure assigned by the Cadastre to each property. It does not describe how much a buyer would pay for their home today, but rather forms part of the property's **cadastral description** alongside other physical, legal and economic data. That description includes, among other things, the location, cadastral reference, surface area, use or intended use, quality of the construction, reference value, cadastral value and cadastral owner. This is set out in the Cadastre's own legal text: cadastral information is an administrative database, and the data contained in it are presumed to be true unless proven otherwise, without prejudice to what results from the Land Registry

It is worth keeping this practical idea in mind: the cadastral value is not a snapshot of the market, but an official valuation designed for the administrative management of properties. For that reason, it can be useful for identifying a property, organising information about it and serving as a basis in certain public procedures, but it does not in itself determine the sale price.

Why it does not equal the sale price

The sale price is the result of a specific negotiation between seller and buyer. It depends on factors that the Cadastre cannot reflect to the same extent: the urgency to sell, the condition of the property, actual demand at that time, state of repair, renovations carried out, orientation, floor level, noise, layout or even the buyer's subjective perception.

The cadastral value, by contrast, is obtained through collective valuation procedures and on the basis of administrative criteria. The legal text states that the acts determining new cadastral values are justified by the valuation report from which they derive and, where applicable, by modules, correction coefficients and areas, among other elements. It also states that the Directorate-General for the Cadastre approves the elements required to determine it within those procedures. In other words, cadastral valuation follows a regulatory and technical logic, not the logic of an individual sale and purchase.

A common mistake is to think that, if a property has a low cadastral value, then it is "worth little" or, if it is high, that it is automatically close to the real price. Neither of those conclusions is reliable. The cadastral value may be out of step with market behaviour or fail to reflect the particular features of a specific home. That is why it should not be used as a substitute for commercial analysis when you want to sell, buy or understand the real positioning of your property.

What the Cadastre is for and why it does matter to the owner

The Cadastre is not only there to value. Its function is broader: it is an administrative register serving public authorities, notaries and citizens. The law also makes clear that the creation and maintenance of the Real Estate Cadastre, as well as the dissemination of cadastral information, are an exclusive responsibility of the State, and that valuation forms part of those functions. In other words, the Cadastre describes and organises property reality for public purposes, not to assign a commercial label to the property.

In practice, this matters to the owner because a discrepancy between the actual property and its cadastral description can lead to confusion, procedures or reviews. If the surface area, use, configuration or ownership do not match reality, it is advisable to review the information and, if necessary, correct it. It is also important not to confuse the Cadastre with the Land Registry: the Cadastre has an administrative and tax purpose; the Land Registry has legal publicity effects regarding ownership and property rights.

How to interpret cadastral value without getting confused

If you are an owner, it will help to follow these steps:

1. **Locate the cadastral reference** of your home and check the descriptive record.

2. **Review the surface area, use and general description** of the property to see whether they reflect reality.

3. **Differentiate the cadastral data from the market data**: one is administrative; the other depends on the market.

4. **Do not use the cadastral value as the asking price** without a specific analysis of the property.

5. **If you spot discrepancies**, consider a documentary review or an indicative professional valuation.

Useful tips:

- If you are thinking of selling, base your decision on a market valuation and not just the cadastral figure.

- If your home has undergone renovations, subdivisions or significant changes, check whether the cadastral description is still correct.

- If you inherited or bought a property some time ago, do not assume that the Cadastre reflects the current state of the property without checking.

Common mistakes:

- Believing that the cadastral value is the same as the price at which it can be sold today.

- Confusing the Cadastre with a mortgage valuation.

- Taking an administrative figure as if it were a market offer.

- Ignoring discrepancies in surface area or description because "it's only a tax figure".

What you can do if you want to know how much your home really is worth

If you need an indicative estimate to help you make decisions, you can request an online valuation from UBICASA at https://www.ubicasa.es/valoracion-vivienda-madrid. The estimate is indicative, not an official valuation, and provides a value range with a PDF report; you can also request a visit if you consider it appropriate.

If you would prefer to discuss your case in detail, you can use https://www.ubicasa.es/contacto. You can also visit the physical office at Montesa 29, Madrid, Monday to Friday from 10:00 to 15:00 and from 16:00 to 19:00.

In short: cadastral value serves to describe and value a property administratively; the sale price depends on a specific market and a specific negotiation. They are different figures and, in practice, should not be confused.