Glossary definition
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements. Gross development value is determined by analysing comparable sales evidence and market conditions in the local area.
Definition
The total market value of a development upon completion, encompassing all units and any commercial elements. Gross development value is determined by analysing comparable sales evidence and market conditions in the local area. It forms the basis for calculating loan to GDV ratios and is the primary metric used by lenders to size development finance facilities.
See also
Closely related terms.
GDV (Gross Development Value)
The estimated total market value of a completed development project, calculated as the sum of all individual unit sale prices or the investment value of the completed scheme.
Net Development Value
The gross development value of a completed scheme minus all costs of sale including estate agent fees, legal fees, and marketing expenses.
LTGDV (Loan to Gross Development Value)
A key lending metric in development finance that expresses the total loan amount as a percentage of the gross development value of the completed scheme.
Red Book Valuation
A formal property valuation prepared in accordance with the RICS Valuation Global Standards, known as the Red Book.
Residual Land Value
The value of a development site calculated by taking the gross development value of the completed scheme and deducting all development costs including build costs, professional fees, finance costs, and developer profit.
Further reading
Guides that touch this term.
Guide
RICS Red Book Valuations for Development: What Lenders Require
A comprehensive guide to RICS Red Book valuations in development finance, covering what lenders require, how valuations are structured, and how to ensure your scheme is accurately assessed.
11 min read readReadGuide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
Development Finance Application Checklist: Documents You Need
A comprehensive checklist covering every document lenders require for a development finance application, from development appraisals to contractor tenders and planning evidence.
11 min read readRead
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