Article 16 of the Saudi Eminent Domain Implementing Regulations

This article explains how the assessment committee values the property being expropriated, subject to the criteria and controls of the Saudi Authority for Accredited Valuers.

1. The methods: the committee uses one or more methods, and must state in the valuation decision the methods it used, which include:

• Comparison: deducing the property's value by analyzing the prices of properties similar to it.
• Cost: comparing the cost of constructing a new similar property in specifications and use, less depreciation, on the basis of the construction cost prevailing at the time the decision to start expropriation procedures was issued.
• Income: deducing the value by calculating the property's net or expected income over its remaining productive life.

The phrase "which include" indicates that these methods are not exhaustive.

2. Valuing buildings and structures: the committee is guided by:

• Their specifications and technical characteristics.
• The replacement cost of a new equivalent less depreciation.
• The value of existing lease contracts and their commercial importance.

In practical terms for the owner, the valuation decision must state the method used, which lets him understand how the committee reached the figure. Existing leases and the commercial importance of the building are also among the elements the committee is guided by. Anyone who believes the valuation of their property did not take these elements into account can consult a lawyer specializing in real estate cases.