In property development and investment, accurate financial forecasting is critical to project success. Gross Development Value (GDV) is a core metric used to estimate the total revenue a property development will generate upon completion and sale. It serves as a foundational figure for assessing project feasibility, profit margins, and funding requirements. For developers, investors, and lenders, understanding GDV—and how to calculate it effectively—is essential for making informed, strategic decisions. This guide explains what GDV is, how it’s calculated, and how Fraser Bond supports clients in GDV-based real estate ventures.
Gross Development Value refers to the total market value of a completed property development project at the time of sale. It represents the anticipated revenue before deductions such as construction costs, professional fees, taxes, and financing expenses.
GDV is used to:
GDV = Total Estimated Sales Value of All Units in the Development
For example:
GDV can also apply to commercial developments by factoring in capitalisation rates and projected rental income.
Profit on Cost (%)
Shows profitability relative to development cost.
Profit on Cost = (GDV – Total Development Cost) ÷ Total Development Cost × 100
Loan-to-GDV (LTGDV)
Used by lenders to assess risk. Lower LTGDV ratios are typically more favourable.
Loan to GDV = Loan Amount ÷ GDV × 100
Residual Land Value
GDV helps determine how much a developer can afford to pay for land.
Residual Land Value = GDV – Development Costs – Profit Margin
Fraser Bond conducts comprehensive market research to support accurate GDV projections, ensuring clients operate with realistic, data-driven forecasts.
Fraser Bond offers end-to-end support for property developers and investors, including:
With extensive market insight and valuation expertise, Fraser Bond ensures projects are grounded in accurate, achievable GDV targets, safeguarding profitability and investment success.
Gross Development Value (GDV) is a critical financial metric in real estate development, underpinning decisions from site acquisition to project funding and sales strategy. Accurately calculating GDV allows developers and investors to assess feasibility, secure financing, and maximise returns. With Fraser Bond’s expertise, clients receive data-driven GDV assessments and strategic guidance, ensuring sustainable, profitable property development outcomes.