ESTATE agent Savills yesterday reported that its profits for 2009 would be “significantly ahead” of previous expectations.
The international real estate advisor saw a higher-than-expected level of transactions in the UK prime residential market, as well as an increase in UK commercial market transactions. In Asia, which comprises 40 per cent of Savills’ business, it also reported continued strength in transaction volumes despite expectations that the market would cool.
Analysts, who had originally forecasted pre-tax profits of around £17m for 2009, upgraded their forecasts to around £22m to £24m despite concerns regarding the sustainability of Savills’ recent transaction increases.
While the recent growth in sales offers signs of a pick-up in the global market recovery, a number of Savills’ transactions were completed earlier than expected, and have therefore contributed to the boost in year-end forecasts.
The estate agent said it would remain cautious about the sustainability of the current performance of both the UK and Asia Pacific markets in the upcoming year.