Savills looks to rising deal flow in second half

Savills said trading across the group is “comfortably ahead” of this time last year, as the agency readies itself for an even busier H2. In a trading update ahead of today’s annual general meeting, the agency said capital transaction activity globally remains subdued but is improving, singling out a noticeable value adjustment in the UK. Leasing deals were “more resilient”, it added, with office take-up “skewed to prime stock”. The agency said it sees “significant investor interest in the secure income characteristics of real estate, where pricing has corrected sufficiently”. “While we have yet to see a significant amount of refinancing-driven activity, we do expect that to increase through the second half of the year,” it added. “Meanwhile, occupiers are clearly focused on improving the sustainability characteristics of their portfolios, as well as creating environments in which their workforces can thrive.” Chief executive Mark Ridley said: “I am delighted with the performance of our teams worldwide in helping clients facing challenging circumstances and in seeking longer-term business development initiatives, which our strong balance sheet enables us to pursue. The strength of our less transactional businesses continues to underpin our performance overall and we continue to anticipate progressively improving volumes through the second half of the year.” Photo © Savills