Profit on Gross Development Value (GDV) measures the development profit expressed as a percentage of the total Gross Development Value of a completed project. This metric is a standard return measure in UK property development finance, used to evaluate the profitability of a scheme relative to its final market value. It is calculated by dividing the net development profit (after all costs, including land, build, fees, and finance) by the GDV, then multiplying by 100. Investors, lenders, and developers rely on this ratio to assess project performance and compare investment opportunities across different developments.
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 Gross Development Value to Cost, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Profit on Gross Development Value (GDV) is most commonly encountered in connection with Hurdle Based Tiering within the property development capital stack.
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