UK Savilles hopes for more real estate return to offices

Aby Jose Koilpbil

(Reuters) – Global real estate company Savills said Thursday that efforts to bring employees back to offices will increase trading volumes in 2025.

Its stock fell from 5.3% to 909p more than a year down, falling 4.3% to date by the end of Wednesday.

“Savills has been moving downward for several months, and it appears that the stock needs a conversion plan, and the report doesn’t actually provide that,” said Chris Beau Champ, chief market analyst at online trading platform IG.

Savills is tackling China’s weaknesses and tackling some trading delays in North America, but earlier this year, turbulence in the bond market halted investors’ sentiment.

CEO Mark Ridley remains optimistic and said in a statement he hopes that drive-driven activities and businesses will continue to order more office attendance as positive.

Savills said most of its markets have already recovered, but said the economic uncertainty caused by US President Donald Trump’s trade tariffs poses a threat to the future.

“The (trade war) will definitely affect all global real estate markets,” CEO Mark Ridley told Reuters.

“If you get through this type of most disrupted period into a slightly safer environment, real estate actually accelerates very quickly.”

Savills did not further elaborate on the benefits seen from returning to the office, but said last year the iconic appearance in the London office market increased by 2%.

Data compiled by LSEG shows that baseline profits for 2024 before tax increased 38% to £129.6 million compared to £130 million ($168.9 million).

(Reporting by Abby Jose Koelbabi of Bengalur