Savills: On target for 2018 but 2019 prospects overshadowed by uncertainty
Property giant Savills delivered mixed messages to the City this morning after warning of future uncertainty despite maintaining expectations for its 2018 performance.
Shares dipped two per cent in late-morning trading after it said its 2019 outlook was clouded by macro-economic and political volatility.
The group said that it was forecasting to see transaction volumes decline in several markets during the year ahead.
However, in the final quarter of last year the FTSE 250 real estate services provider was bolstered by a robust performance in most of its business lines, particularly its commercial arm which has benefited from the recent boom in occupier demand.
In spite of investment costs weighing on the company’s US business, Savills also said its occupier service business had boosted growth across the pond.
The company said: “Prospects for 2019 are overshadowed by macro-economic and political uncertainties across the World. It is difficult accurately to predict the impact of these issues on corporate expansionary activity and investor demand for real estate.”
It added: “At this stage, we expect to see declines in transaction volumes in a number of markets, the impact of which, to Savills, should be largely mitigated by growth in our less transactional business lines; accordingly we currently anticipate that the Group's performance in 2019 should be broadly consistent year-on- year.”