1The difference in one sentence
The cadastral appraisal exists so the State can charge taxes; the market appraisal exists so you can buy, sell, or apply for a loan. One is an administrative value assigned by the authority; the other is the property's market value. They are not interchangeable, but they are related by law.
2What the cadastral appraisal is
The cadastral appraisal is the determination of a property's value based on the physical, legal, and economic information held in the cadastre. It is set by the cadastral authority: the IGAC or the territory's authorized cadastral operator. It is the taxable base for the unified property tax and other levies, and it is updated each annual tax period. Because it is a value set for fiscal and administrative purposes, it has historically sat below market value, although the cadastral update under the multipurpose cadastre aims to bring them closer.
3What the market appraisal is
The market appraisal is the estimate of the property's market value: the probable price in a free transaction between a buyer and a seller. It is performed by an appraiser registered in the Open Registry of Appraisers (RAA, Law 1673 of 2013) and takes into account location, area, condition, use, and the area's supply and demand. It is the appraisal a bank requires for a mortgage loan or the one used to set a sale price.
4The 60% rule
By law, the cadastral appraisal cannot be lower than 60% of the property's market appraisal. It is a reference floor that links both values: if you know the cadastral value, you have an approximate lower bound for the market value. In practice, the actual ratio varies by municipality and by how up to date each area's cadastre is.
5When each one is used
A practical summary of when each appraisal matters:
- Cadastral appraisal: property tax, levies, betterment charges, procedures before the authority, and municipal planning.
- Market appraisal: sales and purchases, mortgage loans, setting up guarantees, estates, in-kind contributions, and expert appraisals.
- Market guidance (Terraes): to get a quick idea of the value before requesting either official appraisal, to compare areas, or to negotiate with context.
6Frequently asked questions
What is the difference between a cadastral and a market appraisal?
The cadastral appraisal is the official value that the cadastral authority (IGAC or the cadastral operator) assigns to a property and that serves as the basis for property tax. The market appraisal is the property's market value: what it would cost to buy or sell it today. The cadastral value is usually lower than the market value and is updated each annual tax period.
Does the cadastral appraisal have to be at least 60% of the market value?
Yes. Colombian regulations establish that the cadastral appraisal cannot be lower than 60% of the property's market appraisal. It is a reference floor: in practice the ratio varies by municipality and by each area's cadastral update.
Who carries out the cadastral appraisal?
It is carried out by the cadastral authority: the IGAC or the territory's authorized cadastral operator (under the multipurpose cadastre, many municipalities have their own operator). The market appraisal, on the other hand, is performed by an appraiser registered in the Open Registry of Appraisers (RAA, Law 1673 of 2013).
What is each appraisal used for?
The cadastral one serves as the basis for property tax, levies, and public procedures. The market one is used to buy, sell, apply for a mortgage loan, set up a guarantee, or settle an estate. Terraes guides you on the market value, but it does not replace either of the two official appraisals.
Is the Terraes appraisal cadastral or market?
Neither in a legal sense. Terraes offers a market value estimate (guidance), supported by the cadastral appraisal as a historical anchor, by market listings, and by recorded sales. It is informational: it is not a certified appraisal.
Want a reference for the market value of your area? Explore the appraisal by city, learn how we calculate it, or check how much your house is worth with the price per m² by city and neighborhood. If the figure you have is the property tax bill, start with what the cadastral appraisal is. Remember: the Terraes estimate is guidance, not a certified appraisal.