GDV (Gross Development Value)
The estimated total value of a property development project once all units are completed and sold or let.
Gross Development Value (GDV) is the total estimated value of a property development project on completion. For a residential scheme, it is the sum of the estimated sale prices of all completed units. For a commercial development, it is the estimated investment value of the completed building (typically assessed as the net rental income capitalised at an appropriate yield).
GDV is the central figure in development finance. Lenders typically lend up to 65-75% of GDV (LTGDV), ensuring there is sufficient equity cushion to absorb cost overruns or a decline in property values during the development period. A higher GDV relative to total project cost means more borrowing capacity.
GDV assessments are typically provided by an independent RICS-registered valuer at the lender's instruction. This forms part of the development finance application pack alongside planning permissions, build cost schedules, and architectural drawings.
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