The main benefits of an urban cadastre

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An accurate and up-to-date cadastre will serve as the basis for urban development. Combined with various socio-economic and ancillary information, the cadastre will provide the basic knowledge for any further spatial analysis and related decision making. We can identify four main benefits provided by an efficient urban cadastre: land tenure and real estate security; access to credit; equity and efficiency of tax collection, and urban management and planning.

Integrated with the registry, the cadastre is one of the factors that guarantees land and real estate security as it represents an objective, public proof of ownership or occupancy. Considering that land tenure and real estate security are essential for social peace, a comprehensive and accurate cadastre is consequently a key condition for the sustainable and peaceful development of the city.

Increasing security of tenure gives owners an incentive to invest on land and real estate or capital equipment for working or using the land and real estate, this is sometimes known as the investment demand or security effect. Finally, increasing security on tenure improves the functioning of land markets and therefore eases the reallocation of land and real estate to their more productive use, this is sometimes known as the efficiency or transaction effect.

A parcel based title can be used as collateral and increases access of the poor to medium and long term credits. Therefore, it can remove constraints to, and reduce the cost of, both capital for long term investments and working capital. This effect is sometimes known as the collateral effect. Nevertheless titling in itself is not sufficient for the development of credit. This must be accompanied by the improvement and strengthening of credit related financial markets and by incentive mechanisms towards owners or occupants who are still remaining reluctant to borrow against their land or their real estate from fear of losing it.

The cadastre represents a comprehensive census of owners and occupants and an objective assessment of land and real estate distribution and values. It is therefore the basic variable to ensure equity and efficiency of tenure based on people's participation, it is important to emphasize that tax collection is not the only objective of a cadastre and that everyone will benefit from the other advantages.

Last but not least, the cadastre is the basis geo-informational layer for urban planning and management as it gives the information about: who is living where and what there is where. The cadastral information is very accurate with enough details for any further urban planning and urban operations. According to the type of analysis to be performed, it will be necessary to supplement the cadastre with additional socio-economic data. In many cases cadastral information is so important for utility and facility private companies that the latter agree to co-finance the establishment of the urban cadastres.

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