Savills plc, the international real estate advisor, has announced its unaudited results for the six months ended 30 June 2022.
The results show a strong performance, which is comfortable ahead of pre-Covid levels.
- Transaction Advisory revenues up 14%
- Commercial transaction revenue increased 26% overall with growth across all regions
- Residential transaction advisory revenue down 11%; UK residential markets performed well albeit with anticipated reduction in activity levels
- Less transactional businesses, performed well in aggregate with revenue up 9%
- Property and facilities management revenue up 8%, consultancy revenue up 6%
- Savills investment management revenue significantly ahead with assets under management (AUM) up 9% to €26.5bn (£22.8bn)
Commenting on the results, Mark Ridley, Group Chief Executive of Savills plc, said: “2022 has presented a number of heightened macro-economic, geopolitical, and, in some locations, continued Covid related risks to investors, corporates and to many people’s personal lives. I am delighted with the responses of our people and our clients to doing business in challenging circumstances and specifically in respect of their support for Ukraine.
“Despite staff cost inflation and the anticipated increase in discretionary costs, we have performed well so far this year, in line with the Board’s expectations. With our strong balance sheet, we are continuing to undertake a variety of business development activities across the Group to enhance our service to clients worldwide.
“With inflation driving interest rates up globally, a new experience for many market participants, real estate markets began to adjust in the second quarter. We expect that process to continue through the second half of the year. However, there remains significant investor interest in the secure income characteristics of real estate and occupiers are progressively focussing on improving the sustainability characteristics of their portfolios as well as creating environments in which staff can thrive.
“At this stage it is too early to predict with any accuracy the potential impact of the political and economic environment on real estate transaction volumes globally, although clearly the risk is towards a short term reduction in activity as markets adjust to, inter alia, rising debt cost. Notwithstanding this risk, given our performance to date and having previously taken a cautious view of likely transactional performance in 2022, at this stage the Board’s expectations for the year as a whole remain unchanged.”
The main image shows Geri O’Brien, Head of Savill’s Jersey office.