Savills sees dip in FY2022 profit, expects ‘more positive conditions’ for real estate in 2024

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Savills, an international real estate advisory firm, has announced its preliminary financial results for the fiscal year 2022 ended on December 31, 2022. Group revenue for Savills came at GBP2.3 billion ($3.57 billion), representing a 7% increase year-on-year from the GBP2.15 billion reported in 2021. However, underlying profit before tax fell 18% year-on-year, to GBP 164.6 million.

The revenue growth for the 2022 fiscal year was supported by an increase across all segments. Transactional advisory revenues grew by 4% from the previous year and the less transactional businesses, including property and facilities management, investment management, and consultancy, all saw a 9% y-o-y increase.

Property and facilities management recorded the highest y-o-y increase (13%) in revenue while consultancy services saw a 4% increase and investment management revenue saw a 1% rise. Assets under management rose by 1.2% to GBP22.1 billion.

Mark Ridley, group chief executive of Savills, commented on the increase in numbers, saying that the performance of the group in 2021 was “slightly ahead” of expectations despite the challenging markets. He also mentioned that the result was substantially ahead of those recorded in 2019.

Ridley highlighted potential challenges for the coming year, considering the focus on inflation and interest rates, as well as the uncertain rate of adjustment for individual investment markets adapting to the cost of debt. He expected progressive improvement from the second half of the year onwards.

Marcus Loo, CEO for Savills Singapore, noted that the transactional teams had once again performed strongly and further acquisitions were being made to expand the non-transactional area of the business.