What Gross Development Value Is
You’ll meet GDV as the headline number in every development appraisal: the projected total value of your scheme once it’s complete and sold, or valued, at market rates. Most development lending metrics anchor to it.
Your GDV has to be honest, because everything hangs off it: an overstated GDV leads to over-leveraged finance and a scheme that can’t service or repay its debt when the real values land.
You can’t wish a higher GDV into existence. You’re pricing a projection, not a promise, and the day your sales agent reports the last units moving slower than planned, your cash flow stretches even though prices held.
How GDV Is Calculated
You calculate it from what the finished scheme sells for. On a residential development, GDV is the expected sale price per unit multiplied by the number of units, so 10 units at £350,000 gives a GDV of £3,500,000.
Your own estimate isn’t the one that counts: for finance, the lender commissions an independent RICS valuer and underwrites to that figure, not your appraisal.
You can’t borrow against a GDV the valuer won’t sign off. The day your broker breaks the news that a £4m appraisal came back at £3.6m, the loan, and your cash flow, drop with it.
How Lenders Use GDV
You’ll see lenders cap their exposure as a percentage of GDV, the loan-to-GDV ratio. Senior development finance reaches roughly 55 to 65%, stretch senior 70 to 75%, and a senior-plus-mezzanine stack up to about 80 to 85% in total.
At a 65% ceiling, the cap is really the lender’s safety margin: it keeps them secured even if costs overrun, the market softens, or not every unit sells at the projected price.
You won’t out-borrow the GDV cap, whatever your costs say. At month-end your accountant applies a 65% cap to a £3.5m GDV and confirms the facility tops out near £2.275m, with the rest coming from your cash flow.
GDV vs Net Realisation
You should keep GDV and net realisation separate in your head. GDV is gross, before sales and marketing, legal fees, agent fees and post-completion costs. Net realisation strips those out and reflects what you actually bank.
Your financing runs on GDV, but your viability runs on net: lenders size the loan against GDV, while you should judge whether the scheme really works against net realisation.
You can’t spend the gross figure; the costs come off first. At the year-end review your accountant takes agent and sales fees of 2 to 3% of GDV off the top to see what actually reaches your cash flow.
GDV for Income-Producing Schemes
You calculate GDV differently when you’re keeping the scheme rather than selling it. For a buy-to-let or build-to-rent development, GDV is the capital value of the finished income-producing asset: the net annual rent divided by the applicable market yield.
Your GDV then moves with yields, not just rents: a higher yield, reflecting more perceived risk, cuts the GDV and squeezes your cash flow on refinance, even when the rent is unchanged.
You can’t hold GDV steady if the yield market turns against you. The day your valuer re-runs the numbers at a softer yield, your GDV, and the cash flow a refinance would free, slip with it.
GDV FAQs
What is gross development value (GDV)?
Gross development value is the projected total value of a development once it is complete and either fully sold or valued at market rates. It is the headline figure in a development appraisal and the primary anchor for most development finance lending metrics. It’s a projection rather than a guarantee: the actual realised values can be higher or lower, and the timing of sales affects cash flow even when prices match the appraisal.
How is GDV calculated?
For a residential development, GDV is the expected sale price per unit multiplied by the number of units (for example, 10 units at £350,000 is a GDV of £3,500,000). For a mixed-use scheme it combines residential sales values with the value of the commercial element. For a retained income-producing scheme, such as build-to-rent, GDV is the net annual rental income divided by the applicable market yield. For finance, the lender relies on an independent RICS valuation rather than the developer’s own estimate.
How do lenders use GDV to size a loan?
Lenders cap their exposure as a percentage of GDV, known as loan-to-GDV (LTGDV). Senior development finance typically reaches around 55 to 65% of GDV, stretch senior up to 70 to 75%, and a senior-plus-mezzanine structure up to about 80 to 85% in total. The cap exists to keep the lender secured if costs overrun, the market softens, or not all units sell at projected prices. On a £3.5m GDV, a 65% cap gives a maximum of about £2.275m of debt.
What is the difference between GDV and net realisation?
GDV is a gross figure: it doesn’t deduct sales and marketing costs, legal fees, estate agent fees or post-completion professional costs. Net realisation (or net realisable value) subtracts those costs and reflects what the developer actually receives. Lenders size the loan against GDV, but developers should assess genuine viability against net realisation, because sales and agent costs of 2 to 3% of GDV can be significant on a larger scheme.
How we reviewed gross development value
What we covered. We explain gross development value in 2026: what it is, how it’s calculated for sale and retained schemes, how lenders cap lending against it, and how it differs from net realisation. We don’t rely on comparison-site summaries or aggregator data.
Data sources. Loan-to-GDV ranges were checked against primary sources in July 2026, including specialist lender product pages, RICS valuation practice and the lenders we assess in our development finance reviews and roundup.
How we handle gaps. Where a figure varies by lender, we give the market range rather than a single false-precision number, and we flag that your GDV depends on the scheme, the comparables and the valuer.
Update cadence. We re-verify this page at least monthly, and whenever market pricing moves. The verification date reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.
Regulatory note. This page is editorial content, not regulated financial advice. Development finance to a limited company or investor is generally unregulated lending, so compare facilities and read the terms before you sign.