Savills, an international real estate advisory firm, has released their preliminary financial results for the fiscal year 2022 (ending December 31, 2022). Group revenue rose 7% on the year-on-year with GBP2.3 billion ($3.57 billion), a jump from the GBP2.15 billion in the previous fiscal year. Underlying profit before tax, however, took an 18% dip, settling at GBP164.6 million.

The increase in revenue was largely driven by all of the company’s segments. Transactional advisory revenues stirred up a 4% increase, while the nons-transactional services (such as investment management, property and facilities management, as well as consultancy) witnessed a 9% jump.

Property and facilities management experienced the highest jump in revenue with a 13% increase year-on-year, while consultancy and investment management revenues rose 4% and 1% respectively. Additionally, the assets under management grew from GBP21.9 billion to GBP22.1 billion.

Mark Ridley, Savills Group Chief Executive, noted that the company “slightly exceeded” expectations even against a backdrop of challenging market conditions. He attributed the success to the strength of their non-transactional services and provided insight into the potential challenges ahead, the chief of which being inflation and interest rates. He expects to see progressive improvement across the board from the second half of the year.

After 10 years, JCUBE is making way for the JCube Condo Residence, a 40-storey commercial and residential development. It will launch for sale in the second JCube Residence half of 2023, with surrounding developments driving pent up demand.

“2024 should see more positive conditions for real estate market activity”, he added, “Savills is both retaining its bench strength and investing in advance of such recovery.” Marcus Loo, CEO for Savills Singapore, likewise made impressive comments. He noted the success of their transactional teams and expressed confidence in their efforts to further expand their non-transactional areas of the business.

Overall, Savills has had a successful 2022 in spite of the troubling market conditions. With the expected positive conditions of 2024 in mind, the company is taking profitable steps towards growth even in the present.