Compulsory acquisition of land : compnesation for development values
Kalbro, Thomas
A basic idea behind rules of compensation is, in many countries, for the party forced to surrender land to be in the same economic position as if the compulsory acquisition had never happened. The property owner shall be compensated for the damage he suffers. The compensation normally corresponds to the market value of the property. When only a part of the property is affected by compulsory acquisition, the compensation must equal the loss of market value. However, there may be exceptions to the principle of compensation corresponding to the market value. One exception, in some countries, is that values based on expectations of a change in land use development values are not compensated, i.e. the compensation shall be based in the value of existing land use. The purpose of this paper is to discuss whether development values should be compensated or not from the perspective of fairnesss.
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