The recently signed Accelerated and Reformed Right of Way (ARROW) Act is set to reshape the relationship between property ownership and infrastructure development in the Philippines. While the law promises faster project rollouts by removing monetary compensation for easements, it also puts property owners in a delicate position—balancing the value of their land against the needs of national development.

This shift is not just theoretical. It is already unfolding in Corinthian Gardens, one of Metro Manila’s most exclusive subdivisions. The Department of Transportation (DOTr) has offered ₱222.2 million in compensation for five road lots and one open area that will be affected by the Metro Manila Subway Project. The country’s first underground railway, this 33-kilometer system will connect northern Metro Manila to the Ninoy Aquino International Airport, benefiting millions of commuters with faster and more efficient travel.

The Corinthian Gardens Association, Inc. (CGAI) has called on its members to vote on whether to accept the offer and sign a deed of easement. At least 318 affirmative votes are required to finalize the deal. But the timing is critical—if the subdivision does not act before the ARROW law takes effect later this month, the community will lose its chance at compensation entirely.

For many residents, this moment is historic. Since 2017, homeowners have opposed the subway project, citing concerns over disruption and property rights. Now, under the new law, refusal or delay could make Corinthian Gardens the first casualty of uncompensated easements in the country.

How the ARROW Act Changes Compensation and Property Valuation

The ARROW Act introduces specific rules on how compensation is calculated and deposited, affecting both agencies and private concessionaires:

• Mandatory Deposit for Acquisitions: Entities acquiring properties must make a deposit equivalent to 15% of the market value of land, crops, trees, and improvements.
• Market Value Defined: Market value is determined as full replacement cost, factoring in depreciation. Compensation is tied to the 2024 Real Property Valuation and Assessment Reform Act schedule.
• Fallback Valuation Methods: If a property is not listed in the schedule, payment is based on Bureau of Internal Revenue zonal valuation and assessed worth of improvements, including immovable machinery, structures, crops, or trees.
• Untitled Land Requirements: Owners or possessors of untitled land must provide multiple documents to establish ownership and valuation:
  • Tax declaration
  • Affidavits from disinterested local residents
  • Real property tax certificate
  • Certification from the Department of Environment and Natural Resources (DENR)
  • Technical description of the property

These provisions provide clarity for compensation while also emphasizing the government’s goal of streamlining land acquisition for infrastructure projects.

What This Means for Real Estate Owners Everywhere

Easements may still be required, but cash payment is limited to properties with proper documentation. Corinthian Gardens may be the first to experience this, but all landowners and subdivisions nationwide should take note.

By clarifying deposits and valuation methods, the law reduces delays from disputes or incomplete documentation, but it also limits the bargaining power of landowners.

Infrastructure projects like the subway can raise surrounding property values, but owners may face restrictions, partial land use, or temporary disruptions without guaranteed full compensation.

Landowners must review their titles, subdivision road lots, and open spaces. Proper documentation is now critical to ensure any compensation is received.

Corinthian Gardens sets a precedent. The subdivision’s decision is symbolic: accept ₱222.2 million as the last offer of its kind, or reject it and risk being the first casualty of uncompensated easements.

The Bigger Picture

The ARROW law is designed to prioritize public good by removing cash compensation as a barrier to completing large-scale infrastructure projects. For landowners, however, it forces a rethinking of property rights, valuation, and documentation.

Corinthian Gardens is the first community to face this dilemma head-on. Their decision will not just affect their neighborhood; it will send a strong signal to the entire real estate industry.

As licensed real estate professionals, it is crucial to recognize that the rules of ownership are evolving. While monetary compensation may no longer be guaranteed in many cases, properties connected to new infrastructure may gain long-term value through improved accessibility and desirability.

The lesson is clear: while the law changes the landscape of compensation, it also challenges landowners to rethink ownership, value, and public service in real estate. Corinthian Gardens stands as the first casualty, but also as a case study for all real estate stakeholders navigating the future.