Savills (LSE:SVS) has said it expects solid year-on-year growth in 2025, supported by a clear rebound in transactional activity during the fourth quarter after a weaker mid-year period. Earlier softness was attributed to geopolitical and fiscal uncertainty, including US tariff concerns and delays around the UK budget, which weighed on market confidence.
Transactional revenues strengthened across EMEA, with particularly strong momentum in the Middle East and Southern Europe. The group also delivered a record performance from its small capital markets team in New York. Results in Asia Pacific were more uneven: growth in Hong Kong, Singapore, Korea and India was partly offset by continued weakness in Mainland China. However, restructuring measures in China have improved profitability, while the business in Australia was further reinforced and the firm continued to expand its real estate investment banking platform.
Outside core transaction-led activities, performance was steady. Property and facilities management delivered results in line with expectations, supported by further systems and organisational changes in China and Germany. Savills also acquired a 70% stake in Singapore-based Alpina Holdings, enabling the group to offer fully integrated facilities management services in that market. Consultancy operations, including valuation and project management, recorded strong demand, while Savills Investment Management generated stable revenues and approximately £2.3bn of net new capital inflows, reflecting rising investor appetite for secure core income strategies. Group-wide cost reviews are expected to lead to restructuring charges of up to £30m.
The company finished the year with net cash broadly unchanged, despite the impact of acquisitions and foreign exchange movements. Savills also completed a planned leadership transition, with Simon Shaw set to assume the role of chief executive from 1 January 2026 and a new chief financial officer due to join shortly. Management said strong pipelines and improving market sentiment support confidence in a recovery in transactional markets, alongside continued resilience in less cyclical parts of the business.
From a market perspective, Savills’ overall stock assessment reflects robust financial performance and positive corporate developments, which underpin its competitive position. Technical indicators point to a constructive trend, although valuation remains a moderating factor due to a relatively high price-to-earnings multiple. The absence of recent earnings call disclosures was not seen as materially affecting the overall view.
More about Savills
Savills plc is an international real estate advisory group providing transactional services such as capital markets and leasing advice to commercial and residential clients. The group also operates substantial less transactional businesses, including property and facilities management, consultancy and investment management. Savills has a global footprint spanning EMEA, Asia Pacific and North America, with a strong base in the UK, growing exposure to the Middle East and Southern Europe, and expanding capabilities in areas such as real estate investment banking and integrated facilities management.
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