In UK property development finance, Gross Development Value to Cost (GDV to Cost) is a crucial ratio comparing the estimated or actual Gross Development Value (GDV) of a project against its total development costs. These costs typically include land acquisition, construction, professional fees, and financing expenses. This ratio helps property developers, lenders, and investors gauge a project’s financial viability and potential profitability. A higher GDV to Cost ratio indicates stronger value creation and more favourable returns, making it an essential metric when assessing funding feasibility and development risk in the UK property market.
This sits beneath Exit Value Metrics (GDV, Stabilised Value, Reversionary Value), introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Profit on Gross Development Value (GDV), as both are closely related measures used to assess similar aspects of performance or risk.
View glossary entry