Savills highlights slowdown in global transaction activity but Q1 in line

(Sharecast News) - Savills said on Wednesday that it traded broadly in line with its expectations in the first quarter and for the year to date, although it cautioned there had been a slowdown in global transaction activity. In an update ahead of its annual meeting, the real estate advisor said its global capital transaction revenue improved in the first quarter, up 7%.

It also said there has been renewed investor interest in prime core office stock throughout Europe.

Leasing revenues grew over 20% in Q1 as markets have continued to be more active across most sectors, it said.

Savills said that most prime residential markets have remained resilient, with the UK performing better than last year ahead of the increase in Stamp Duty.

The less transactional businesses - property management, investment management and consultancy - have performed as expected, with a particularly strong performance in consultancy.

"The uncertainty created by recent macro-economic and geopolitical events has resulted in a short term slowdown in global transaction activity, which we expect to recover as sentiment becomes more certain," Savills said.

Chief executive Mark Ridley said: "We have had a good start to the year with performance comfortably ahead of the prior year, reflecting progressive recovery in most markets. The current macro-level uncertainty is clearly having a near term impact on transactional activity, as investors and corporates digest the potential effects of recent events. However, I am confident that the underlying trajectories for our transactional businesses are substantially improved year-on-year.

"I am delighted with the performance of our teams worldwide in helping clients navigate these circumstances and in seeking longer term business development initiatives, which our strong balance sheet enables us to pursue."