Savills saw full-year profits hit record levels as it cashed in on the UK’s booming property market.

The estate agent’s profits more than doubled to £200.3m in 2021, while revenues surged 23% to a record £2.15bn.

Savills’ total dividend for the year was also hiked to 61.4p per share from 17p in 2020.

Savills hailed strong trading in the final quarter of 2021, led by the UK and Asia Pacific regions.

Transactional advisory revenues increased by 34% in recovering markets, while commercial transaction revenues were 35% higher, with strong growth in the UK and Asia Pacific. Residential transaction revenue jumped 31%.

Savills chief executive, Mark Ridley, commented: “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.”

Following the release of Savills’ full year results, Andy Murphy, director at investment research and consultancy firm Edison Group, commented: “This is a strong set of results for Savills following a tough period for the real estate industry. Group revenue saw growth of 23% to reach £2.15 billion, with underlying profit before tax increasing by 107% to £200.3m.

“There was good performance across divisions, including revenue growth of 34% in Transactional Advisory, 35% in Commercial Transaction and 31% in Residential Transaction. A similar trend was seen in less transactional businesses, with Property and Facilities Management revenue increasing by 9% and Consultancy revenue up by 24%.

“The group made significant strategic progress within the year, including a partnership between Savills Investment Management and Samsung Life Insurance. Investors will keep a close eye on the development of this relationship, as well as the recent business venture with Thomas Zabel as part of plans to expand in the EU market.

“Management noted that 2021 was a strong year for the UK housing market, with double digit house price growth. Transactional activity also hit its highest level since 2007, and prime markets remaining attractive, particularly outside of London. However, the group acknowledged that outlook holds elements of uncertainty following the Ukrainian crisis. Further macroeconomic pressures – including rising inflation and living costs – could pose a challenge to the housing market, but these results provide a strong foundation for Savills to enter the year ahead.”

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