In case of the purchase or condemnation of private property for purposes of public utility or social benefit, the compensation shall be based on the reasonable value in the market of such property, without including any increase due to well-founded and reasonable expectation that the property acquired, or other property similar thereto, or situated within the locality where the former is situated, may now or later be required for public use or social benefit, or be necessary for some use to which it can be applied only by the Commonwealth of Puerto Rico or any agency or instrumentality thereof with power for the condemnation of private property.
In case of the sale or condemnation of the private property to which the preceding paragraph refers, the compensation shall likewise not include any new increase by reason of the public improvements or expenditures made in the locality by the Commonwealth of Puerto Rico through any of its executive departments, agencies or instrumentalities.
History —Apr. 26, 1946, No. 479, p. 1402, § 2.