The ARROW Act and your land: just compensation for railways and infrastructure right of way
By Jose Dante Almeda Jr., PRC Licensed Real Estate Appraiser No. 11261 & Licensed Real Estate Broker No. 33179 · Last updated July 2026
If a railway, road, or other infrastructure project is coming through your property, the rules changed in late 2025. The Accelerated and Reformed Right-of-Way Act, Republic Act No. 12289 or the ARROW Act, took effect on 4 October 2025 and amended the older Right-of-Way Act to make government land acquisition faster. It still guarantees you just compensation, but because projects can now move more quickly, you have less time to respond to a low offer. The single best thing you can do is get an independent licensed appraisal early, so you know what your land is truly worth before you are asked to sign.
- The ARROW Act (Republic Act No. 12289) took effect on 4 October 2025, amending the older Right-of-Way Act to speed up land acquisition for infrastructure.
- It still guarantees just compensation, based on a nationally consistent valuation, before the government can take your land.
- The law lets projects move faster, which means you have less time to react to a low offer.
- It now covers private entities delivering public services, not just national government projects.
- An independent licensed appraisal, obtained early, is your protection against an undervalued offer.
What is the ARROW Act?
The ARROW Act is Republic Act No. 12289, signed on 12 September 2025 and effective 4 October 2025. It amends Republic Act No. 10752, the Right-of-Way Act of 2016, which governs how the government acquires private land for national infrastructure. Its purpose is to remove the right-of-way bottlenecks that have long delayed roads, railways, airports, and utilities, most visibly the massive North-South Commuter Railway now cutting through Bulacan, Metro Manila, Cavite, and Laguna. The law speeds acquisition up while keeping the constitutional promise that private property cannot be taken for public use without just compensation.
What changed for landowners?
- Faster acquisition. The whole point of the law is speed, which means shorter windows for you to review offers and respond. Delay favours the project, not the owner.
- A nationally consistent valuation system. Compensation is to be based on a standardised real property valuation, part of the government\’s broader valuation reform. This aims for consistency, but a standardised base figure is not the same as the full market value of your specific property.
- Wider coverage. The Act now reaches private entities that deliver public services, not only national government projects, so more takings fall under these rules.
- Shallower subsurface right of way. For priority projects the subsurface ROW depth was reduced from 50 metres to 18 metres, relevant to underground transit.
- Mandatory transparency. Agencies must publish right-of-way status online, which you can use to track a project affecting your land.
Do I still get just compensation?
Yes. The ARROW Act reaffirms, in its very first policy section, that private property shall not be taken for public use without just compensation, and that owners must be promptly paid. What the law changes is the speed and machinery of acquisition, not your fundamental right to be paid the fair value of what is taken. The negotiated-sale-first, expropriation-if-rejected structure carries over from the Right-of-Way Act, which we cover in our guide to fighting a low road-widening offer.
How is the compensation valued?
On fair market value, established by evidence. The nationally consistent valuation gives a base reference, much as zonal values did before, but just compensation must still reflect your property\’s real character, use, and market. The affected land, the improvements and trees removed, and the damage to any unusable remainder are all compensable, and each is a valuation question. As with transmission-line takings, a base or reference figure often sits below what comparable property actually commands, which is exactly the gap an independent appraisal documents. Our guide to zonal value versus fair market value explains why.
Why does the faster process work against me?
Because speed rewards the party that is ready. The law is designed to let projects deposit, take possession, and proceed quickly, with courts fixing any contested compensation on a tight timeline. If you receive an offer and have no independent basis to judge it, you may feel pressured to accept before you understand the value. An owner who already holds a licensed appraisal is not rushed; they can respond immediately, with evidence, and negotiate or contest from a position of knowledge rather than pressure.
What should I do if a project is coming through my land?
- Do not sign the first offer. Acknowledge receipt, note the deadlines, and take time to assess.
- Get an independent licensed appraisal quickly. Given the faster timelines, this matters more than ever. It gives you a defensible market value at once.
- Track the project. Use the agency\’s mandated online disclosures to see where your parcel stands.
- Engage a lawyer if it heads to court. If you contest the offer, the value is decided at expropriation, where your appraisal is evidence and an appraiser can serve as court commissioner or expert witness.
ARROW Act and just compensation: questions, answered
What is the ARROW Act?
The ARROW Act is Republic Act No. 12289, effective 4 October 2025. It amends the Right-of-Way Act (RA 10752) to speed up government acquisition of private land for infrastructure such as roads, railways, and airports, while still guaranteeing just compensation to owners.
Does the ARROW Act reduce my compensation?
No. It reaffirms that private property cannot be taken without just compensation and requires prompt payment. What it changes is the speed of acquisition, which means you have less time to respond, making an early independent appraisal more important.
How is just compensation valued under the ARROW Act?
On the fair market value of the property, using a nationally consistent valuation as a base reference plus the specific character, use, and market of your land, along with improvements and damage to the remainder. A base figure often sits below true market value, which an appraisal documents.
The North-South Commuter Railway affects my land. What should I do?
Do not sign the first offer, note the deadlines, and get an independent licensed appraisal quickly given the faster ARROW Act timelines. That gives you a defensible market value to negotiate or contest from, rather than accepting under pressure.
Does the ARROW Act cover private companies?
Yes. Unlike the older law, the ARROW Act extends right-of-way rules to private entities delivering public services, not only national government projects, so more takings now fall under its faster procedures.
Almeda Realty and Appraisal Services is run by a PRC-licensed real estate appraiser in the Philippines, serving Cavite, Metro Manila, and the surrounding provinces, including the corridors affected by the North-South Commuter Railway. We prepare independent valuations for landowners facing right-of-way and infrastructure takings. Read about our appraisal service, see what an appraisal costs, or book a free consultation to review your offer.
Ready to know what your property is worth?
Book a free consultation and get clear, professional guidance.
