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Global real estate adviser Savills has reported an 11% increase in profit before tax to £145.3m in its results for 2025.
Basic earnings per share increased 17% to 77.2p and the group is recommending a total dividend per share of 33.8p, up 11.9% from the previous year.
Savills said its results highlight resilience across all business areas and regions, with transactional businesses showing robust growth and profits increasing due to operational gearing and prior restructuring benefits.
Meanwhile, Savills also announced today (12 March) that it has agreed to buy Eastdil Secured in a $1.1bn (£827m) acquisition. The transaction adds scale to the group’s real estate investment banking activities (Savills Capital Advisors) in both North America and EMEA.
Savills group chief executive Simon Shaw told Property Week the deal would be “immediately earnings‑accretive”. He said: “We don’t yet know exactly when the transaction will close, but for 2027 it will be accretive on all grounds. It’s a really good fit with our organisation and our strategic direction in investment banking.”
In the UK, commercial property investment showed modest growth in 2025, supported by improved activity in the office and industrial sectors, while London remained the leading global destination for cross-border capital, Savills said.
Residential market conditions were more subdued, as Savills noted cautious buyer sentiment and tax-related uncertainty ahead of last November’s Autumn Budget, which affected activity at the prime end of the market.
However, Savills said the Budget ultimately delivered the least worst outcome for this market, contributing to a significant surge in completions in December.
The UK remains Savills’ core residential market, accounting for 68% of residential transactional revenues in the year, but this was down from 77% in 2024. UK residential transactional revenue fell 4% to £199.7m, while underlying profit fell 9% to £18.1m.
Shaw said: “The post‑Budget surge in completions has marked something of a turning point. I’d describe our residential business, which is high‑end residential, as being pretty resilient. There are still question marks around the tax burden on overseas nationals, but central London is probably the best value it has been for many years, and that has helped stabilise the market.”
He added: “For everyone involved in lettings, the Renters’ Rights Act is a significant issue. It will probably have a negative impact on revenue this year before the act and its effects on the lettings business fully flow through and normalise. So that’s another factor to consider, but overall, our international residential business is doing very well.”
At a sector level in the UK, Savills said the most notable shift in 2025 was the recovery of the office market. Office investment volumes reached their highest level since 2022, re-establishing the sector as the largest contributor to overall transaction activity.
Other key areas of growth for Savills’ UK business in 2025 included industrial and logistics, reflecting strong demand for data centre infrastructure and general manufacturing space, alongside healthcare and hotels.
Savills said the outlook for 2026 is positive, with continued momentum expected in global real estate markets despite geopolitical uncertainties.
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