Savills has reported trading broadly in line with expectations for the first quarter of 2025 and the year to date, with performance comfortably ahead of the same period last year.
The global real estate adviser saw a 7% increase in global capital transaction revenue in Q1, with notable improvements in the EMEA region.
The firm says that values in most prime markets have largely recalibrated, contributing to renewed investor interest in prime core office stock across Europe.
Leasing revenues rose by more than 20% during the quarter, reflecting increased market activity across most sectors. Prime residential markets remained resilient, with the UK performing better than the same period last year, ahead of a planned increase in Stamp Duty.
IN LINE WITH EXPECTATIONS
Savills’ less transactional businesses – including property management, investment management and consultancy – performed in line with expectations, with consultancy showing particular strength.
The company acknowledged that recent macroeconomic and geopolitical developments had created short-term uncertainty, leading to a temporary slowdown in global transaction activity. However, Savills noted that its underlying pipeline of potential transactions is significantly improved compared to the same time last year.
SOLID PLATFORM
The Group stated that its less transactional businesses continue to provide a solid platform with a resilient earnings stream. On the transactional side, there is ongoing investor interest in the secure income characteristics of real estate, and investor demand for office space has grown in most major cities.
Looking ahead, Savills plans to continue developing its business through selective recruitment and acquisitions, supported by a strong balance sheet. While the firm expects the impact of tariffs to weigh on transaction execution in Q2—resulting in a first-half performance similar to last year – it anticipates a continued improvement in market conditions in the second half of 2025.
The Group’s Half Year Results for the six months to 30 June will be announced on 14 August 2025.
GOOD START TO THE YEAR
Mark Ridley (main picture), Savills Chief Executive, says: “We have had a good start to the year with performance comfortably ahead of the prior year, reflecting progressive recovery in most markets.
“The current macro-level uncertainty is clearly having a near term impact on transactional activity, as investors and corporates digest the potential effects of recent events.
“However, I am confident that the underlying trajectories for our transactional businesses are substantially improved year-on-year.
“I am delighted with the performance of our teams worldwide in helping clients navigate these circumstances and in seeking longer term business development initiatives, which our strong balance sheet enables us to pursue.”
