Real-estate advisor Savills announced that it is on track to meet profit expectations for the year ahead. Despite challenges from increased interest rates and geopolitical events, the company’s strong performance in its Consultancy and Property Management businesses has offset these obstacles.
Savills anticipates a pretax profit of between £85 million and £97.1 million ($108.3 million-$123.7 million) for 2023. The average expected profit is £91.3 million. The company attributes its success to its less transactional service lines, which have remained robust amid market uncertainties.
While acknowledging that the upcoming year may present challenging conditions, Savills believes that most markets have already surpassed their peak uncertainty. It expects re-financing activities and sustainability plans to drive transaction volumes and enhance price transparency in several markets.
While it is too early to provide a clear outlook for 2024, Savills foresees underlying market improvements in the first half of the year, paving the way for a broader recovery in the second half. The company remains positive about its performance in 2024, particularly due to its ongoing restructuring program, which is expected to lay the foundation for further improvements.
At 0834 GMT, Savills’ shares were down 0.7% at 969.5 pence.