Methodology / Glossary / Development Yield

Development Yield

Profivo computes development yield as NDV divided by Total Costs (including finance), expressed as a percentage. The ratio shows how much net asset value is created per euro spent — closely related to RoC but uses NDV rather than profit in the numerator.

Why it matters

For income-producing assets, yield on cost must exceed the market cap rate to create value.

In Profivo

Available when the project is configured as a rental or investment hold scenario.

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