Newly-filed accounts for the business show that turnover at the unit fell to €34.2m in 2023 from €40.1m in 2022.
The firm’s revenue is derived from transaction advisory services, consultancy, and property and facilities management. It covers office, retail, industrial, hotel, residential, land and mixed-use development schemes.
“During 2023, real estate markets faced obvious challenges associated with inflation and the related steep rise in interest rates, leading to a decline in trading volumes as markets adjusted to prevailing conditions,” according to the company’s directors.
They described the performance of the firm as “robust” given the market backdrop.
“The company’s revenues decreased by 16pc to €34.2m, which was in line with expectations following the prolonged recalibration of real estate markets,” the directors noted.
They added: “The company’s transactional service lines experienced a significant drop in revenue during the year as market conditions remained extremely subdued for longer than anticipated at the start of 2023.”
That was the main cause of the 43pc reduction in the firm’s profit after tax, which was €3.4m in 2023.
That represented an underlying profit margin of 10pc, compared with 15pc in 2022.
The directors note in the accounts that were signed off last November, that while uncertainty may continue for some time, “most markets appear to be past the peak of uncertainty”.
“There are some early signs of underlying market improvements, which should set the course for a broader recovery during the second half of 2024 and into 2025,” they pointed out.
Savills was involved in a number of transactions during 2024, including the €21m sale of Dalata’s Clayton Whites Hotel in Wexford in November, and the acquisition by Summix Capital of Independent House on Middle Abbey Street in Dublin by Summix Capital. The building will be used for student accommodation. A November report from BNP Paribas Real Estate Ireland noted “emerging positives” for Dublin’s office market, but said short-term headwinds persist. During the third quarter, the report noted that Dublin still had one of Europe’s highest office vacancy rates, at 15.7pc.
It said the back-to-the-office dynamic appeared to have slowed, with potential knock-on impacts for office demand. Nearly half the third-quarter take-up of office space was accounted for by sub-lets or assignments that did not impact the overall amount of vacant space.
