Gross Development Value (GDV)

A project’s Gross Development Value (GDV) can be calculated to obtain a near-accurate figure of what the development will be worth once it is complete, making it an essential metric for all property developers and investors. GDV is a key aspect of development appraisal, without which any early financial projections may be substantially flawed.

If you require an accurate Gross Development Value at an early stage of your project, please get in touch with our team of expert surveyors.

What is Gross Development Value?

For many investors and developers, GDV is a critical performance metric for monitoring the anticipated capital or rental profit from a construction project. It outlines how changes to the budget or expenditure will impact the final value or the property and informs many other aspects of a development’s evaluation.
Establishing the anticipated GDV of your project will help you keep costs on track through the acquisition of the land or existing building, over the course of construction and ensure a financially successful outcome once the works are complete.

How is Gross Development Value calculated?

A project’s GDV will be calculated using current property prices and recent transactions involving comparable properties. Combined with specific data about your project, these can be used to estimate the expected market value of your development when it’s ready to be let or sold. If you are interested in figures for a specific time frame (such as monthly or annual income) then our surveyors can determine this for you.

Residual Valuations and Developer Profits

GDV is essential for carrying out residual appraisals and determining the developer profits for a site. Where the value of land with development potential is required, we can calculate it using the GDV, less the planned cost of construction, the total sum of fees and required profit.

Developer profits can be estimated using a similar method, where our team will calculate the GDV less the cost of construction, applicable fees and the price of the land. With these figures, developers and investors can assess the financial viability of a project and whether adjustments need to be made for a better financial outcome.

Contact Us

For professional advice regarding construction projects and developments anywhere across the South East, contact our team of experienced surveyors. We can provide a no-obligation quote for providing a GDV for your project or assist with a wide range of property services. Call 0208 832 9069 or use our contact page to get in touch.

 

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