Mark Ridley, Group Chief Executive of Savills plc, commented on the company’s improved performance in 2024, noting that most markets were in recovery as the year ended. While uncertainty remains, expectations of reductions in the cost of capital in 2025 are expected to support re-financing activity and corporate office demand, positively impacting transaction volumes.

Market Conditions & Performance

UK Commercial Property

• Macroeconomic and geopolitical factors limited urgency for transactions.
• Leasing activity returned to normal levels, with London office take-up up 2% year-on-year and just 5% below the long-term average.
• City of London prime rents increased by 7.5%, driven by occupier demand.
• Logistics market remained stable.

UK Residential Market

• Interest rate cuts helped boost mainstream residential market activity, although fiscal changes post-election affected sentiment.
• Transactional revenue increased by 7% to £183.3m.
• Second-hand sales revenue rose 13%, with exchanges up 8% to 5,099 (2023: 4,735).
• New home sales revenue declined by 13%, due to a 20% drop in exchanges. However, government housing policy improvements indicate future recovery.
• Prime Central London prices fell 1.9%, while regional prime markets declined 1% as post-COVID price gains adjusted.
• Savills’ Operational Capital Markets business (multi-family/BTR/PRS/PBSA) increased revenue and profits, despite key transactions rolling into early 2025.
• Overall UK Residential profit increased 6% to £20.5m with an 11.2% margin (2023: 11.4%).

Technology & Digital Growth

Savills continued its focus on technology investments, leading to significant gains:

• Auction business grew market share, with over £810m in property sales, a 40% year-on-year increase.
• Cureoscity, a landlord-occupier platform, saw a 35% increase in annual recurring revenue (ARR).
• Workthere, a flexible office advisory service, more than doubled UK revenue and grew 70% globally.

Outlook for 2025

The sector is recovering

• Market recovery expected to continue, supported by lower financing costs.
• Re-financing activity and increased corporate office attendance to drive transaction volumes.
• Savills remains strategically positioned for growth, with a strong balance sheet and diversified service offering across global markets.

Mark Ridley concluded:
“The sector is recovering, and Savills is well positioned to capitalise on market improvements while continuing to broaden our services and enhance profitability.”