Glossary definition
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. Net development value gives a more accurate picture of the actual proceeds a developer will receive from disposals.
Definition
The gross development value of a completed scheme minus all costs of sale including estate agent fees, legal fees, and marketing expenses. Net development value gives a more accurate picture of the actual proceeds a developer will receive from disposals. Some lenders and appraisals use NDV rather than GDV to provide a more conservative assessment of project viability.
See also
Closely related terms.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
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.
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
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
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