Savills said in a trading update that it now expects full-year performance for 2024 to be in line with the board’s expectations and substantially ahead of of the previous year.

The company said yesterday that it expects the challenging macro conditions to continue for some time in 2025. Still, it said most markets are in recovery and that sentiment has turned to expectations of the likelihood of progressive reductions in the cost of capital.

The company added that the UK performed strongly in 2024, supported by the resilience of the prime residential business and its market share of commercial transactions, and ‘less transactional’ business.

Savills said it saw a significant performance improvement on year in North America despite a number of transactions being deferred to 2025. The company said it saw signs of recovery in Australia and Singapore in the last quarter, with Japan and Vietnam performing well.

In 2023 the company reported pre-tax profit of £55.4m ($67.8m) and revenue of £2.24bn.

Reflecting on the year ahead, Savills said: “The challenging macro conditions are expected to continue for some time; however, most markets are in recovery and as we enter 2025, whilst current financial markets are characterised by uncertainty, sentiment has turned to expectations of progressive reductions in the cost of capital being likely during the year.

“We expect re-financing driven activity, the sustainability agenda and the trend towards corporates requiring greater office attendance for staff, to continue to be positive for transaction volumes. These factors lead us to expect continued improvement through 2025”.

Savills plans to report its full 2024 results on 13 March 2025.