Gross Development Value (GDV) meaning

In practice, gross development value (GDV) is the total expected market value of a development once complete. It is a valuation concept, not defined by legislation or case law, and is usually adopted by contract and determined by reference to RICS Valuation – Global Standards and guidance on development property. GDV is the aggregate capital value of all completed units on the site, assessed at completion: sales prices for units to be sold and the capitalised investment value (using market rent and yield) for elements to be retained. It is before deduction of construction, finance, marketing and professional costs. Assumptions commonly address specification, planning status, tenure, phasing, affordable housing, incentives and rent‑free periods, and the treatment of VAT and stamp duty. The measure is central to development appraisals and residual valuations, planning and viability assessments (including section 106 negotiations), development agreements, options, overage and profit‑share, secured lending (loan‑to‑GDV covenants) and insolvency or distribution waterfalls. Usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland, though inputs may reflect local practice and taxes (for example SDLT/LBTT/LTT or Irish stamp duty). Clear drafting should fix valuation date, methodology and assumptions to minimise disputes.