Good news for the real estate boom Savills: sales and revenue growth as residential and commercial buyers buy high-end homes and warehouses.
- Savills said 2021 profits will be “very significant” ahead of previous forecasts
- The group added that London’s central property market was also strong
Savills has experienced an “extraordinarily strong” trading period in the last few weeks of 2021 in the UK and the Asia-Pacific region.
In a trade update, a senior real estate agency group said its full annual figures were “significantly” higher than expected.
The group reiterated that it had benefited from this.significantly lower levels of voluntary spending on travel, entertainment, and marketing activities, but these costs are expected to return to pre-pandemic levels by the end of the year.
Savills expects its main profit to be “significantly ahead” of previous expectations before it is taxed for 2021, but did not report any balls today.
Strong trade: Savills said it has experienced an “extraordinarily strong” trading period in the UK and across the Asia-Pacific.
Shares of the FTSE 250-listed company rose sharply today, rising more than 8 percent this afternoon to 1,435.00p.
As the group nears the end of 2021, it has seen an increase in residential and commercial buyers looking to buy high-end homes and warehouses. Warehouse space is becoming increasingly important at a time when online shopping is on the rise for many commercial shoppers.
Businesses are flocking to take up more warehouse space, while a large number of home buyers are looking for simple recreation areas in the village during the pandemic.
However, Savills noted that sales in London’s central real estate market are also well maintained.
It said: “The UK’s main housing market has continued to perform very strongly in the last quarter and the volumes in London’s main market have clearly started to improve.
“There is a clear shortage of stocks currently on sale, so despite our high results in 2021, we still expect our activity to be moderate in 2022.”
London remains the most expensive region in the country in October, with an average house price of £ 516,000, according to data released by the National Bureau of Statistics in December.
The Savills website lists some properties for sale in London today as a “price to use”, but at the same time the property with the highest price tag seen in the capital is worth more than £ 39 million. ‘rov has a price.
Capital Sales: Savills said sales were strong in London
The group said its business in the Asia-Pacific region was much higher than expected.
Hong Kong trade activity and market share remained strong during this period, and Australia, Singapore and Japan also had strong trade activity in the final quarter.
For the next year, the group maintained its prospects. He argues that inflationary pressures in many markets will lead to the highest rate of employment costs over the years, and that voluntary spending will “gradually normalize”.
The group added: “In terms of sales revenue, at this stage we expect a slight normalization in the volume of commercial capital operations and a decline in activity in some housing markets, particularly in the UK.”
Analysts at Peel Hunt estimate that the group’s annual profit before tax in 2021 could reach £ 190 million, up 33 per cent from the 2019 figure. The Real Estate Agency Group will announce its annual results on March 10.