Savills hails "significantly improved" underlying pipeline; revenue up

(Alliance News) - Savills PLC on Wednesday said most prime residential markets remained resilient in the first quarter of 2025, and it is confident in its outlook.

The London-based real estate services provider, which is holdings its annual general meeting on Wednesday, said global capital transaction revenue was up 7% on-year in the first quarter, boosted by Europe, the Middle East & Africa.

Savills noted "renewed investor interest in prime core office stock throughout Europe".

Notably, leasing revenue jumped 20% in the first quarter.

Savills said most prime residential markets remained resilient through the first quarter with the UK performing better last year ahead of the increase in stamp duty.

Further, it said its underlying pipeline of potential transactions is "significantly improved" on-year.

Savills said the impact of tariffs in the second quarter means that its performance in the first half will be similar to that last year, while it still expects improvement in market conditions for the second half of the year.

Chief Executive Officer Mark Ridley said: "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."

Savills shares were 1.7% lower at 987.00 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

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