FPD Savills has followed Chesterton International by warning that its results for the current year may not meet market expectations.
In a statement to the stock exchange FPD Savills CEO Aubrey Adams warned that the UK commercial investment market has been affected by general caution in the financial sector. And he said leasing markets have seen a greater than expected decline in the demand for offices in particular from technology companies. The problems are not restricted to the UK: in Asia, which is a key market for FPD Savills, commercial leasing has been similarly affected, particularly by US based multi-nationals reviewing space requirements.
However Adams said residential markets remain strong at the top end of the market with an increased level of instructions. ‘Our current book of properties over £1 million ($1.4 million), exchanged or under offer, is higher than this time last year,’ he said.
Adams said he expectated that transactional activity in the UK commercial sector and in the Asia Pacific region will pick up in the coming months. ‘We believe that results for the full year will be weighted towards the second half,’ he said.