Profit on GDV
Developer's profit divided by gross development value.
Definition
Profit on GDV (also called profit on revenue) is profit divided by the scheme's gross development value. In England, planning practice guidance on viability says a return of 15 to 20% of GDV may be considered suitable for plan making; individual schemes and lenders set their own targets. Profit on GDV of p equals profit on cost of p divided by (1 minus p).
Related terms
Profit on Cost
Developer's profit divided by total development cost.
Development Appraisal
Calculation of whether a development scheme makes enough profit, or can afford its land.
GDV (Gross Development Value)
Total expected sale or letting value of a completed scheme.
Viability Assessment
Test that a scheme can be delivered while meeting policy.
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