Real estate consultant Savills posted better than expected profits and expects a continued drift back to the office to boost transactions this year.

Underlying profit before tax surged 38% to £130.4 million in 2024, compared with average analysts’ estimate of £129.6m.

Group chief executive Mark Ridley said: “Savills’ improved performance in 2024 reflects the robust earnings provided by our less transactional businesses together with the effect of our inherent operating leverage in the early recovery of transactional markets. 

“Most markets were in recovery as we entered 2025 and, whilst uncertainty continues, there remains the expectation of reductions in the cost of capital during the year.

“We expect re-financing driven activity and the trend towards corporates requiring greater office attendance for staff to continue to be positive for transaction volumes.

“Savills remains well positioned to deliver against the group’s strategic objectives of broadening our offering to clients across geographies and service lines, supported by a strong balance sheet and thus driving profitability as market recovery continues.

An interim dividend of 7.1p per share (2023: 6.9p), amounting to £9.7m was paid on 30 September 2024, and a final ordinary dividend of 14.5p per share (2023: 13.9p) is recommended, making the ordinary dividend 21.6p per share for the year (2023: 20.8p).

A 330% increase in the supplemental interim dividend to 8.6p per share (2023: 2.0p) is declared, taking into account the improved underlying performance of the Global Transaction Advisory business.

Taken together, the ordinary and supplemental interim dividends comprise an aggregate distribution for the year of 30.2p per share, an increase of 32% on the 2023 aggregate ordinary and supplemental dividend of 22.8p.