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
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.