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Savills signals ‘early signs of market recovery’ as revenues grow

Estate agency firm Savills has revealed a lift in revenues as it cheered “early signs of market recovery”.

Profits also jumped as the FTSE 250 firm has sought to bounce back from challenges in the property market.

Savills reported that revenues grew by 5% to £1.06 billion over the first six months of 2024, compared to the same period last year.

The company said this represented an “improved performance driven by early signs of market recovery”.

It came amid a positive performance from its UK business, where total revenues grew by 6% to £435.9 million.

However, the group highlighted that some markets, including Germany, France and Greater China, remained subdued with “very low transaction volumes” as property markets continue to react to pressures in the economy and high borrowing costs.

Meanwhile, the group said it saw 9% growth in its transaction advisory business, while it also saw improvement in its property and facilities management arm.

However, investment management revenues dropped by 10% for the half-year.
Mark Ridley, group chief executive, said: “Our improved performance in the first half reflects the positive effects of early recovery phases in a number of our markets, as well as the robust and growing earnings provided by our less transactional businesses.

“Whilst we have seen resilience in prime commercial leasing markets, global capital transaction volumes remain subdued, although activity is recovering in certain markets.”

Savills revealed that pre-tax profits jumped by 48% to £8.9 million for the half-year.

Peel Hunt analyst Clyde Lewis said: “Where outlook is concerned, the group continues to build its strength in anticipation of market recovery.

“There are early signs of a recovery in some transactional markets, with prime commercial leasing still strong, and the less transactional business continues to make good progress.”

Shares in the company dipped 3.4% in early trading.