Record year for Savills

Friday 11 March 2022

Savills, the international real estate advisor, has released its annual results for 2021, revealing record revenue and profits following their recovery from the pandemic.

Revenue for the Group increased by 23% to £2.15 billion, up from £1.74 billion in 2020.

Reported profit before tax was recorded as being 120% greater than in 2020, totaling £183.1 million.

The basic earnings per Group share also increased substantially, up 114% to 104.9p from 49p.

The Group said that its 2020 strategy of maintaining full operating strength and high levels of client service allowed the organisation to have a strong recovery in 2021. 

Transactional Advisory revenues were up 34% in recovering markets, with Commercial Transaction revenue increased 35% overall with strong growth in the UK and Asia Pacific. Residential Transaction revenues also increased 31%.

Savills Investment Management revenue increased and this was driven by base management fees growth of 30%. Assets under Management were additionally up 22% at €25.8bn. 

The Group’s Property and Facilities Management, and Consultancy revenues were up by 9% and 24% respectively. 

Other ventures entered by the Group in 2021 include a new strategic partnership between Savills Investment Management and Samsung Life Insurance to grow their future investment management business. 

The Group also claim they have continued investment in people, technology leadership and innovation in sustainability, including the launch of Savills Earth consultancy services. 

Pictured: Savills advises on residential property and significant commercial property transaction in the Bailiwicks, and across the world.

Commenting on the results, Mark Ridley, Group Chief Executive, said: “Savills delivered a record performance in 2021 reflecting the significant recovery in both residential and commercial transactional markets supported by growth in our less transactional Investment Management, Property Management and Consultancy businesses.

“The Group has started 2022 in line with our expectations and the strength of our balance sheet supports our growth strategy to pursue further complementary acquisitions and significant recruitment across our global business.”

Mr Ridley also acknowledged the issues posed by the on-going conflict in Ukraine, mentioning how the Group plans to assist in humanitarian efforts. 

“At this stage it is too early to predict the economic, including longer term inflationary, impact of the Ukrainian crisis on the world’s real estate markets. 

“Subject to this key uncertainty, we would anticipate real estate transaction volumes and discretionary spend to normalise in the year ahead, alongside the continued recovery of global markets as they emerge from pandemic-related disruptions.

“Savills is providing support both through international charities and via our Polish operation, focussing particularly on Ukrainian refugees. Our thoughts are with everyone affected in the region and we can only hope for a peaceful resolution as quickly as possible.”

Tony Rowbotham, Head of Office for Savills Guernsey, said: “2021 was a tremendous year for the Guernsey office with success across both the commercial investment sector as well as in open and local market residential sales.  

“I am very grateful to our team’s loyalty, hard work and dedication, which has been the cornerstone of our success.  I must also thank our clients, both those who were new to us in 2021 but also to those who return to us time and time again.”

Geri O’Brien, Head of Office at Savills Jersey, said: “We have gone from strength to strength in the last year. Our residential sales team have completed several significant deals and reported record transactions across the board. 

“This year has started in a similar vein, and we look forward to continuing to support our clients and grow our business further over the coming months. The property market in Jersey remains incredibly strong and demand continues to outstrip supply.”

Pictured (top): Tony Rowbotham (left), Head of Savills Guernsey, and Geri O’Brien, Head of Savills Jersey.