What is GDV?
GDV stands for Gross Development Value. It is the estimated open market value of a property development project once it has been fully completed.
Gross Development Value (GDV) is the single most important metric in property development. It represents the estimated end-value of a project on the open market once all construction and refurbishment works are 100% complete.
Development finance lenders base their maximum loan amounts directly on this figure. For example, a lender might offer a maximum facility of '65% LTGDV' (Loan to Gross Development Value), meaning they will lend up to 65% of the projected end value to cover the land purchase and build costs.
Professional Valuations
Lenders will not simply take a developer's word for the GDV. They will instruct a RICS-qualified surveyor to produce an independent 'Red Book' valuation report assessing the projected GDV based on comparable sales evidence in the local area.