Real estate Nidwalden government sets out details for property valuation

In the canton of Nidwalden, the value of land is no longer determined by visual inspection. The cantonal government has set the reform of property valuation for 2025 and sent the detailed provisions for consultation by September 27.

Until now, non-agricultural properties have been valued on the basis of an inspection. Both the real value and the capitalized earnings value were taken into account. The District Council decided to simplify the procedure in 2021. This change will come into force at the beginning of 2025, as announced by the State Chancellery on Monday.

Depending on the property category, the new procedure will be based on the real value or the capitalized earnings value. The real value consists of the land value and the depreciation caused by the age of the property (current building value). The capitalized earnings value is based on the net rental income, which is then divided by a certain capitalization rate.

In the implementing provisions, the Government Council stipulates that the real value applies to smaller residential buildings, smaller mixed residential and commercial buildings, condominiums and commercial buildings. For residential buildings with four or more apartments, purely commercial buildings and larger mixed-use buildings, the capitalized earnings value applies.

The government council also determined the land values, capitalization rates and rental values, as stated in the press release. These are reviewed every seven years.

Last valuation a long time ago

If the value of the land is determined according to the new method, it will increase by almost 66 percent overall. The government council points out in the consultation message that most properties were last valued before 2006 and that prices for residential properties have risen sharply since then.

The difference in rental values is smaller. The extent to which the increase in land and rental values would affect overall tax revenue could not be precisely determined, the dispatch stated. The tax consequences would depend on the overall financial circumstances of the owners.