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
Designing for neurodiversity: driving change for the better
Accessible inclusive design translated into reality.
RIBA detailed response to Grenfell Inquiry Phase 2 report
Briefing notes following its initial 4 September response.
Approved Document B: Fire Safety from March
Current and future changes with historical documentation.
A New Year, a new look for BSRIA
As phase 1 of the BSRIA Living Laboratory is completed.
A must-attend event for the architecture industry.
Caroline Gumble to step down as CIOB CEO in 2025
After transformative tenure take on a leadership role within the engineering sector.
RIDDOR and the provisional statistics for 2023 / 2024
Work related deaths; over 50 percent from constructuon and 50 percent recorded as fall from height.
Solar PV company fined for health and safety failure
Work at height not properly planned and failure to take suitable steps to prevent a fall.
The term value when assessing the viability of developments
Consultation on the compulsory purchase process, compensation reforms and potential removal of hope value.
Trees are part of the history of how places have developed.
The increasing costs of repair and remediation
Highlighted by regulator of social housing, as acceleration plan continues.
Free topic guide on mould in buildings
The new TG 26/2024 published by BSRIA.
Greater control for LAs over private rental selective licensing
A brief explanation of changes with the NRLA response.
Practice costs for architectural technologists
Salary standards and working out what you’re worth.
The Health and Safety Executive at 50
And over 200 years of Operational Safety and Health.
Thermal imaging surveys a brief intro
Thermal Imaging of Buildings; a pocket guide BG 72/2017.