Revenue at Savills rises 22% including nearly £500m turnover in UK
The UK residential property market was driven by a surge in demand for larger properties with more outdoor space, as well as increased activity in the prime London market.
Savills has reported a strong performance with total revenue of £2.3 billion, an increase of 22% compared to the previous year.
In the UK residential property market, Savills saw a 23% increase in revenue to £497.7 million driven by a surge in demand for larger properties with more outdoor space, as well as increased activity in the prime London market.
London also showed a significant improvement in the second half of the year, with a 35% increase in revenue compared to the first half.
LETTINGS
Its lettings business also grew with revenue increasing by 12% to £130.7 million.
Elsewhere, Savills reported a 36% increase in revenue from its commercial property business to £528.3 million.
Savills said it expects the UK residential property market to remain strong in 2023, with continued demand for larger properties and increased activity in the prime London market.
STRENGTH
Mark Ridley, Savills Group Chief Executive (main picture), says: “The Group’s performance was substantially ahead of the 2019 ‘pre-COVID’ comparative period. The strength of our less transactional businesses, primarily Consultancy and Property Management, helped underpin the Group’s performance overall.
“We have started 2023 broadly in line with our expectations. We believe that H1 2023 will be more challenging than its 2022 comparative; however, we expect progressive improvement through the second half of the year.
“2024 should see more positive conditions for real estate market activity and Savills is both retaining its bench strength and investing in advance of such recovery.”
The prime residential markets helped to mitigate the effect of volume declines in commercial activity.”
Nicholas Ferguson (pictured left) Savills Chairman since May 2016 and who plans to retire later this year, adds: “One highlight in the year was the relative strength of the prime residential markets which, particularly in the UK, helped to mitigate the effect of volume declines in commercial transaction activity.
“In the UK, the housing market remained stronger for longer than anticipated, with the prime London housing markets particularly resilient.
“The international nature of the prime London market, with lower dependence upon mortgage financing relative to the wider markets and attractive valuations in a global context, should partially mitigate the effect of further volume reductions in the residential market overall.”
