(Alliance News) - Savills PLC on Monday said that its annual performance will be at the upper end of expectations due to an "excellent" performance in the UK, significant growth in the US and a strong performance from Savills Investment Management.
The estate agent said despite challenges such as Brexit, and political unrest in Hong Kong contributing to lower volumes of activity, "the strength of Savills positions in both markets contributed to a resilient performance through increased market share".
Despite the political uncertainty, the UK performed "excellently" in both commercial and residential markets. The Asia Pacific business performed slightly below expectations as a result of political unrest. Significant growth in North America helped improved year-on-year profits, therefore pushing overall performance up.
Savills Investment Management also performed ahead of expectations, benefiting from performance fees on "certain products".
Looking to the year ahead, Savills says that global investor demand for secure income, restricted supply and expectations of continued low interest rates suggests that the medium and long term dynamics of the UK real estate market should remain largely positive.
"Nevertheless, some caution may remain until the full impact of Brexit is better understood. Certain other global markets continue to be overshadowed by macro-economic and political uncertainties," the company added.
Savills will publish its 2019 results March 12.
Shares in Savills were trading 3.2% higher at 1,185.70 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Savills (SVS)