Glossary

Gross realisation value (GRV)

What gross realisation value (GRV) means in a development feasibility, and why lenders test it alongside cost and margin.

Gross realisation value, or GRV, is the total expected sale or lease value of a completed development before costs are deducted — effectively the top line of a project's feasibility. Lenders weigh GRV against total development cost to gauge a project's margin, and a healthy margin between the two is one of the first things a construction or land bank lender checks. For a borrower, an inflated GRV assumption is the fastest way to have a feasibility questioned, since a lender's own valuer independently assesses as-complete value rather than accepting a developer's sale projections at face value. GRV assumptions are typically stress-tested against a softer sales market as part of assessing whether the facility remains serviceable if realisation values come in below plan.

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