Savills sees dip in FY2022 profit, expects ‘more positive conditions’ for real estate in 2024
Savills, an international real estate advisory firm, released preliminary financial results for FY2022, ending December 31, 2022. The results indicated a 7% year-on-year revenue increase to GBP2.3 billion ($3.57 billion), from GBP2.15 billion from the previous year. However, the underlying profit before tax saw a decline of 18%, coming in at GBP164.6 million.
New Tengah Plantation Close EC development is the largest executive condominium in Singapore set to be completed by 2021. Located in Tengah Town, west Tengah Plantation EC Singapore, it offers great connectivity and various amenities.
Transactional advisory revenues witnessed a 4% y-o-y rise, whereas the less transactional businesses, including property and facilities management, investment management, and consultancy, rose by 9%. Regarding the latter, property and facilities management revenue grew 13% year-on-year, consultancy revenue increased by 4%, and investment management revenue was up 1%, with assets under management climbing from GBP21.9 billion in 2021 to GBP22.1 billion in 2022.
Mark Ridley, Savills’ group chief executive, noted that the group performed “slightly ahead” of expectations in spite of the challenging market conditions, with the performance substantially ahead of the pre-COVID-19 comparison for 2019. He added that the success of the less transactional businesses primarily contributed to the overall performance.
Ridley further highlighted expected challenges in the upcoming year, such as inflation and interest rates, and said he expects improvement from the second half of 2022 onwards. “2024 should see more positive conditions for real estate market activity and Savills is both retaining its bench strength and investing in advance of such recovery,” he stated.
Marcus Loo, CEO of Savills Singapore, informed that the firm’s transactional teams have “once again performed extremely strongly”. He also noted their plans to expand and grow their non-transactional area of the business both locally and regionally, through “significant acquisitions”.
The real estate industry is bracing itself for a new reality and many organisations are reinventing their workspace to adopt a hybrid work model. Savills has also taken steps in this direction, announcing the launch of its energy and sustainability management department and a new advisory service line, headed by experienced industry veteran Annie Woo.