Property company Savills has significantly upgraded its profit forecasts following a rush to buy expensive homes and warehouses at the end of last year.
The FTSE 250 group, which spans both commercial and residential property sectors around the world, said that activity in the last seven weeks of 2021 was “extraordinarily strong”.
Due to that and pandemic-related cutbacks to travel costs and entertainment, pre-tax profits for 2021 would be “very significantly ahead” of previous expectations when it reports results in March, the company said in a trading update on Wednesday.
Last year saw demand for logistics facilities and warehousing surge globally, with investment reaching record levels on the back of an increase in ecommerce and supply chain disruption. Demand for high-end homes in the UK countryside also provided a boost to Savills.
Across the board, investment activity stepped up in the final months of last year as uncertainty around the pandemic began to lift, according to Savills.
But corporate demand to take on new office leases, a core business for Savills, remained below historical averages. The group warned that the frenzy of transactional activity might abate this year even as inflation pushes costs up and pointed to a more moderate 2022.