Savills sees early signs of property market recovery, eyes Asia-Pacific expansion: CEO
Savills sees signs of global property market recovery in 2025
Real estate services company Savills has reported early signs of improvement in the global property market, hinting at a broader recovery in the second half of the year and heading into 2025.
Since the start of the pandemic, transaction activity has been sluggish, particularly in the office and retail sectors. Higher interest rates and tighter credit conditions have also dampened deal appetite in the market.
“We’re already seeing prices recalibrate in these uncertain times, and with potential interest rate reductions in the second half of this year, investors are returning to markets that have adjusted, leading to an increase in volumes,” said CEO Mark Ridley in a statement to Reuters.
Savills noted that its annual profit was bolstered by its less-transactional businesses such as property management and consultancy, which saw a 7% growth in revenue, accounting for 63% of group turnover.
Looking ahead, Ridley expressed plans to diversify and expand the geographical footprint of the business, with a focus on fast-growing markets in the Asia-Pacific region, specifically India and the Middle East.
“With more manufacturing industries shifting to these regions, we need to ensure we can provide services to our customers there,” Ridley explained.
Savills’ consultancy business covers transaction- and portfolio-related valuation assessment, litigation support, and housing consultancy, while property management includes facilities management services such as security and cleaning.
Despite facing a 42% decline in underlying profit before tax to 94.8 million pounds ($121.32 million) in 2023, primarily due to weak transaction volumes in global property markets, the London-based group remains optimistic about the future.
Investors and industry experts will be closely monitoring Savills’ strategies and performance in the coming months as the property market continues to show signs of recovery.
