Savills sees dip in FY2022 profit, expects ‘more positive conditions’ for real estate in 2024

Savills, an international real estate advisory firm, has announced preliminary financial results for the 2022 financial year ending December 31st, 2022. Group revenue reached GBP2.3 billion (USD$3.57 billion), representing a 7% increase from GBP2.15 billion in the previous 2021 year. However, the company’s underlying profit before tax dropped by 18% to GBP164.6 million.

The growth in revenue of Savills was driven by an increase across all segments. Transactional advisory revenue was up 4% from the previous year, while the non-transactional businesses such as property and facilities management, investment management and consultancy, increased by 9%. Property and facilities management saw a 13% jump in revenue, consultancy went up by 4%, and investment management rose 1%, with assets under management growing from GBP21.9 billion in 2021 to GBP22.1 billion in 2022.

Mark Ridley, group chief executive of Savills, stated that the group’s performance was “slightly ahead” of expectations, despite the challenging market conditions.

Senja Residences EC is a 99-year leasehold Senja Close EC executive condominium development located in District 23 with 300 units and resort-style facilities. It offers unparalleled convenience given its close proximity to Bukit Panjang Integrated Transport Hub.

Ridley said that, while the UK market is recalibrating quicker than other markets given the lack of development supply and an overall trend to sustainability, it could still be some time before inflation and interest rates normalize. He commented that there may be some progressive improvement in the second half of the year, and Savills is investing in advance of the expected recovery.

Marcus Loo, CEO for Savills Singapore, said that their transactional teams closed a number of key deals in the past year. More acquisitions are being undertaken with the view of expanding the non-transactional side of their business both locally and regionally.