AUS
NZ
UK
CA
USA
IND
Highlights
- Full-Year Performance: Expected to be in line with expectations and substantially ahead of 2023.
- Regional Growth: Significant improvement in EMEA and North America, with a solid performance in the UK and strong recovery in parts of Europe, the Middle East, and Asia.
- Savills Investment Management: Raised £2bn and launched two new pooled fund products, despite challenging market conditions.
- Outlook for 2025: Recovery expected to continue with improving market sentiment and the anticipation of reduced cost of capital.
Savills plc (LSE:SVS), a global leader in real estate advisory services, has announced that its full-year performance for 2024 is expected to meet expectations and show a significant improvement over the previous year. This strong performance comes despite significant volatility in the transactional markets, driven by macroeconomic and geopolitical factors, including elections in key markets, fluctuations in bond yields, and the prolonged expectation of "higher for longer" interest rates.
Performance by Region
Savills' EMEA business saw substantial year-on-year growth, with the UK leading the way. The UK benefited from the resilience of its prime residential business, strong market share in commercial transactions, and robust performance from its less transactional service lines, such as property management and consultancy. Similarly, Continental Europe and the Middle East showed improved results, aided by restructuring efforts in France and Germany.
In North America, Savills reported a significant improvement in performance, despite some transactions being deferred into Q1 2025. The Asia region had a more mixed performance. While activity in Greater China remained subdued, the company's strong Property and Facilities Management business in the region helped support results. Japan and Vietnam saw strong performances, and the last quarter of 2024 showed signs of recovery in Australia and Singapore.
Savills Investment Management
Savills Investment Management (SIM) traded broadly in line with expectations. Despite challenging market conditions and a correction in pricing during the year, SIM raised approximately £2 billion and launched two new pooled fund products: one in debt and one in equity.
Continued Strength from Service Lines
Savills' less transactional service lines, including consultancy and property management, provided a resilient earnings stream. These services, which have grown in importance as part of the company's strategy, performed well across the board, helping to offset slower transactional activity.
Outlook for 2025
Looking ahead, Savills expects challenging macroeconomic conditions to persist throughout 2025, though most markets are now in recovery. While financial markets remain uncertain, there is optimism that sentiment will improve as expectations grow for progressive reductions in the cost of capital. Key drivers for the year ahead include refinancing-driven activity, the sustainability agenda, and the ongoing trend of corporates requiring greater office attendance. These factors are anticipated to contribute to higher transaction volumes in 2025.
Savills will report its full-year results for 2024 on 13 March 2025.
