Savills trading ahead of last year despite subdued market

(Sharecast News) - Savills said in an update on Wednesday that its performance for the year-to-date aligned with expectations, surpassing the corresponding period last year. The London-listed firm noted global capital transaction activity, which although showing signs of improvement, still exhibited subdued volumes.

It said market values had undergone adjustments, particularly within the UK, and were undergoing recalibration in other regions.

In terms of leasing markets, Savills reported resilience across various sectors, particularly in prime office spaces where rental growth persisted, driven by properties with robust sustainability credentials.

It also indicated that prime residential markets hd maintained their resilience, with transaction volumes slightly below those of the previous year, a trend that was expected.

Savills also acknowledged the performance of its less transactional businesses, which was meeting expectations, contributing to the overall stability of its performance.

Looking ahead, while the first half of 2024 could be impacted by ongoing value recalibrations, the company said it anticipated an improvement in underlying activity levels.

It also expected progressive enhancement in the latter half of the year as market recovery gathered momentum.

"I am delighted with the performance of our teams worldwide in helping clients facing challenging circumstances and in seeking longer term business development initiatives, which our strong balance sheet enables us to pursue," said chief executive officer Mark Ridley.

"The strength of our less transactional businesses continues to underpin our performance overall and we continue to anticipate progressively improving volumes through the second half of the year."

At 1154 BST, shares in Savills were up 1.38% at 1,172p.

Reporting by Josh White for Sharecast.com.