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Development valuations

We offer development valuation services for a wide range of residential and mixed-use assets, including single units, low-rise and high-rise apartment buildings, and major housing estates.

Our professional valuation teams have a thorough understanding of the development process

A development appraisal is a valuation which assesses a property with or without planning permission to establish the likely value of a future use or the value as a cleared site for redevelopment. The valuation is called a ‘development appraisal’ because the Valuer has to assess a multitude of factors including build costs.

Firstly, the Valuer has to assess the value of the completed development.For residential developments this is the likely end sales price of the units or accommodation to be created. For Commercial developments this will typically be the NET income of the completed development capitalised at an appropriate all risks yield. This is known as the ‘gross development value’ the maximum end value proceeds from selling or leasing the development.

Then from the ‘gross development value’ the Valuer then deducts land acquisition costs, building costs, profit, costs of finance and an appropriate profit margin for the developer to derive what the land is worth today. The valuer who will be a Chartered Valuation Surveyor will then make an end adjustment to the derived valuation is planning permission has not yet been granted.

Valuation method

Likely value of the future use ‘gross development value’
LESS costs
= what the land is worth today
(adjusted for risk depending on if planning permission has been granted or not)

Our Expertise

A whole lot of expertise goes into a development appraisal. At Ringley our team is able to draw from:
  1. our Block Management team who set service charges for both small and large schemes. They understand the running costs and how to move the responsibility of future maintenance onto the service charge
  2. our Building Engineering team whose costing expertise and contract administration expertise assists in benchmarking clients’ costing analysis
  3. our Town Planner who spent 40 years on the other side of the fence (in the public sector) before joining our private practice
Rics
The Royal Institution of Chartered Surveyors (RICS) represents the property profession in 146 countries, and regulates its ‘Chartered’ members. All valuations are subject to the RICS International Valuation Standards otherwise known as the ‘Red Book’.
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