Gross development value
The Gross Development Value (GDV) of a development project is an estimate of the open market capital value or rental value the development is likely to have once it is complete. It may be calculated as part of an initial development appraisal and may then be continually assessed to help determine whether the project is likely to be, or has been profitable.
It is calculated based on the market conditions prevailing at the date of the valuation, and may be based on an analysis of recent property transactions for similar properties in the area of the development. This can include asking prices, sale prices, information provided by letting agents or estate agents, or assessments provided by development surveyors.
Gross Development Value may be used as part of a residual valuation, that is, the process of valuing land with development potential. The sum of money available for the purchase of land can be calculated from the value of the completed development (GDV) minus the costs of the development process (including profit). The complexity in such assessments lies in the calculation of inflation, finance terms, interest and cash flow against a programme timeframe.
For more information see: Residual valuation of land
Assessment of Gross Development Value can have a significant impact on the profitability, form, rate of completion, and even the viability of a development project. For example, if a high Gross Development Value is needed to generate sufficient profit for the development to be worth pursuing, it may be necessary to design a high density use for the proposed site.
Accurate assessment of Gross Development Value can be particularly difficult on large, complex projects that may take a considerable time to complete.
[edit] Related articles on Designing Buildings Wiki
- Base year.
- Compound Annual Growth Rate (CAGR).
- Contingency.
- Development appraisal.
- Discounted cash flow.
- Funding options.
- Funding prospectus.
- Investment.
- Property valuation.
- Residual value insurance.
- Site selection and acquisition.
- Site appraisal.
- Surveyor.
- Technical due diligence.
- Yield.
[edit] External references
Featured articles and news
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help the homebuilding sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.
Delayed, derailed and devalued
How the UK’s planning crisis is undermining British manufacturing.
How much does it cost to build a house?
A brief run down of key considerations from a London based practice.
The need for a National construction careers campaign
Highlighted by CIOB to cut unemployment, reduce skills gap and deliver on housing and infrastructure ambitions.
AI-Driven automation; reducing time, enhancing compliance
Sustainability; not just compliance but rethinking design, material selection, and the supply chains to support them.
Climate Resilience and Adaptation In the Built Environment
New CIOB Technical Information Sheet by Colin Booth, Professor of Smart and Sustainable Infrastructure.
Turning Enquiries into Profitable Construction Projects
Founder of Develop Coaching and author of Building Your Future; Greg Wilkes shares his insights.
IHBC Signpost: Poetry from concrete
Scotland’s fascinating historic concrete and brutalist architecture with the Engine Shed.
Demonstrating that apprenticeships work for business, people and Scotland’s economy.
Scottish parents prioritise construction and apprenticeships
CIOB data released for Scottish Apprenticeship Week shows construction as top potential career path.
From a Green to a White Paper and the proposal of a General Safety Requirement for construction products.
Creativity, conservation and craft at Barley Studio. Book review.
The challenge as PFI agreements come to an end
How construction deals with inherited assets built under long-term contracts.
Skills plan for engineering and building services
Comprehensive industry report highlights persistent skills challenges across the sector.
Choosing the right design team for a D&B Contract
An architect explains the nature and needs of working within this common procurement route.
Statement from the Interim Chief Construction Advisor
Thouria Istephan; Architect and inquiry panel member outlines ongoing work, priorities and next steps.