Gross development value

Estimate the completed scheme's aggregate value from dated unit, price, rent, yield and purchaser-cost assumptions.

Quick answer

Gross development value, or GDV, is the estimated aggregate market value of a proposed development on the assumption that it is complete at the valuation date and under the stated market conditions. For sales schemes it is commonly built from unit prices; for income-producing property it may use capitalised net income. It is a valuation input, not contracted cash proceeds.

Use the worked example

Meaning and transaction use

RICS defines GDV as the aggregate market value of the proposed development on the special assumption that it is complete at the valuation date in prevailing market conditions. [S1]

Homes England describes GDV as total scheme income, including private sales, affordable housing and commercial investment value, with stated treatment of purchaser costs. [S2]

Proposed control method: retain a unit schedule, comparable evidence, adjustment log, sales timing and sensitivity table; reconcile gross values to net receipts and cash timing separately.

Worked example

Illustrative sales scheme only. Assume 60 standard units at USD 300,000, 20 premium units at USD 450,000 and commercial space valued at USD 3 million.

Scroll the table horizontally to view all columns.

Component	Calculation	Value
Standard units	60 x 300,000	USD 18 million
Premium units	20 x 450,000	USD 9 million
Commercial space	Assumed	USD 3 million
GDV	18 + 9 + 3	USD 30 million
GDV after 10% residential price downside	27 x 90% + 3	USD 27.3 million

Base GDV is USD 30 million and the stated residential downside produces USD 27.3 million. Neither amount is a contracted receipt.

Proposed transaction review process

Define the scheme

Reconcile planning, areas, unit mix, tenure and programme.

Select valuation evidence

Use adjusted comparable sales, rents, yields and purchaser costs.

Build GDV

Calculate each component and reconcile gross value to net receipts.

Stress

Test price, rent, yield, absorption, delay and mix changes.

Evidence checklist

Scheme evidence

Planning, drawings, areas, unit schedule and tenure.

Market evidence

Comparable transactions, incentives, rents, yields and dates.

Commercial evidence

Reservations, presales, leases and purchaser diligence.

Model evidence

Assumptions, adjustments, timing and sensitivities.

Decision framework

Situation	Proposed action
Comparable evidence is stale	Adjust and disclose the basis or widen sensitivities.
Presales differ from appraisal	Reconcile contracted and uncontracted units separately.
Mix changes	Update areas, pricing, costs and programme together.
The scheme is phased	Model value and cash timing by phase.

Common errors to check

Calling GDV current cash proceeds.
Applying one price to materially different units.
Ignoring incentives and purchaser costs.
Changing value assumptions without updating costs and timing.

Test the completed value

Bring the unit schedule, planning basis, comparable evidence and appraisal to a GDV review. Reconcile every value component and downside assumption.

Discuss the transaction

Primary references and editorial scope

RICS: Valuation of development property
GDV definition and valuation-date assumptions. Reference checked 17 September 2026.
Homes England: Financial viability for housing-led projects
GDV components and residual appraisal context. Reference checked 17 September 2026.

Editorial qualification

General development-finance education. Figures are hypothetical. A formal valuation requires appropriate standards, evidence, assumptions and qualified professional judgement.

General business information. Obtain advice appropriate to the legal, tax, accounting and financing facts. No offer, lender commitment or transaction outcome is represented. All worked examples use expressly assumed figures. Editorial draft date: 17 September 2026.