Savills sees Brexit-fuelled drop in some markets

FILE PHOTO A worker puts up a Savills estate agents sign in London, Britain, April 10, 2018. REUTERS/Henry Nicholls

(Reuters) - UK-based real estate services provider Savills SVS.L said on Tuesday it expects lower transaction volumes in some markets this year because of Brexit-related uncertainties.

Despite tough macro-economic and political uncertainties, the company said it sees 2018 results in line with its expectations.

Savills said its UK commercial transaction and residential businesses performed well in 2018, buoyed by strong demand and continued investment interest. Britain is Savills’ biggest market.

Growth in the firm’s less transactional businesses, which include consultancy and property management, will help offset the hit from lower transaction volumes this year, Savills added.

The company, which saw a sharp drop in its commercial transactions in Britain in the first half, had said overseas investors were still committed to London, and some big firms were looking to expand their footprint in the city.

Britain’s property market has lost some of its sheen since the Brexit vote, which led to increased uncertainty among investors. Concerns remain as firms are expected to relocate jobs from London, especially in the finance sector.

Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Gopakumar Warrier