The real estate company Savills significantly upgraded its profit forecasts after a rush to buy expensive homes and warehouses at the end of last year.
The FTSE 250 group, which spans both commercial and residential real estate sectors around the world, said activity in the last seven weeks of 2021 was “extremely strong”.
As a result of this and pandemic-related cuts in travel costs and entertainment, pre-tax profits for 2021 would be “very significantly above” previous expectations when reporting results in March, the company said in a trade update on Wednesday.
Last year, the demand for logistics facilities and warehouses boom worldwide, with investment reaching record levels due to an increase in e-commerce and supply chain disruption. Demand for high-end homes in the British countryside also gave a boost to Savills.
Overall, investment activity has increased in the last months of last year as uncertainty surrounding the pandemic began to increase, according to Savills.
But corporate demand to enter into new office leases, a core business for Savills, has remained below historical averages. The group warned that the frenzy of transactional activity could subside this year, even as inflation pushes up costs and points to a more moderate 2022.