Gross Development Value

How gross development value works

A valuation considers the completed project, market evidence and assumptions about sale or investment value. The lender may use its own instructed valuation and stress the assumptions.

Practical UK business example

A developer estimates completed units could sell for £2 million. That figure is GDV, not profit: land, build costs, professional fees, tax and finance still need to be considered.

Illustrative example only; not a finance quotation or a client case study.

Why it matters

GDV informs feasibility, leverage and the proposed exit but is only one part of a development appraisal.

Limitations and common misconceptions

Forecast GDV is not a guaranteed sale result or the same as today’s land value. A lender’s valuation may differ from the developer’s estimate.

Explore property finance to discuss how the structure relates to your business.