Land and Development Valuation
Residual valuation of land based on what it can realistically be built out to — not an optimistic projection.
What’s included
- Residual valuation methodology (IVS and RICS aligned).
- Planning and zoning constraint analysis for the site.
- Comparable GDV and rental evidence research.
- Construction cost assessment for proposed development.
- Developer's profit and risk margin benchmarking.
- Sensitivity analysis across key development assumptions.
Land and development valuation addresses one of the more technically demanding categories of valuation work — establishing the value of undeveloped or underdeveloped land based on its development potential, factoring in zoning and planning constraints, likely construction costs, projected sale or rental values of a completed development, and appropriate developer's profit and risk margins. This is valuation work that sits closely alongside our Development Appraisals service under Planning, since both draw on a genuinely informed view of what a site can realistically accommodate and what that development is likely to be worth.
We approach land and development valuation using the residual valuation method, a globally recognised approach set out in both IVS and RICS guidance, working backward from projected completed development value to arrive at a supportable land value — a method that demands close, current knowledge of both local planning constraints and construction cost realities to apply credibly.
Other parts of Valuation
