In UK property development finance, the Cost of Debt to Gross Development Value is a key metric that compares the total interest and debt-related expenses with the projected sale or end value of a development, expressed as a percentage. It shows how much of the gross development value is consumed by financing costs. This ratio helps SME property developers and industry professionals evaluate the cost-effectiveness of borrowing within their capital structure, supporting informed decisions on project funding, cost control, and overall financial viability.
This sits beneath Debt Cost Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Interest as % of Drawn Debt, as both are closely related measures used to assess similar aspects of performance or risk.
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