Savills has reported an extraordinary strong final performance for its global business during the final quarter of 2021 bolstered significantly by a boom for its UK prime residential division.
The company says all its business have exceeded their forecasts and that its UK residential experienced much stronger completion volumes than previously anticipated.
Its trading statement also reveals that its costs continued to be lowered as the pandemic forced it to spend less on discretionary expensive such as travel, entertaining and marketing events ‘in particular’.
Such extraordinary times mean Savills expects its profits for 2021 to be at the top end of its previously published expectations for the business.
“Despite the backdrop of pandemic-related uncertainty in 2021, the UK performed exceptionally well across all business lines,” the company says.
“There were notably strong performances from the Transactional Business lines [i.e. residential sales and lettings], albeit commercial office leasing volumes remained below historic averages in the majority of markets.
“The UK prime residential market continued to perform exceptionally strongly through the last quarter and volumes in the Prime Central London market clearly began to improve.
“Currently there is a definite shortage of sale stock, so despite outperformance in 2021, our expectation of a moderation of activity in 2022 remains intact.”
Overall, looking to the year head, Savills Group says it faces higher employment costs as inflation increases across the globe, that its discretionary costs will return to normal soon, and the UK property boom will simmer down.