UK's Savills sees property slowdown as Iran war weighs on market
Impact of Iran Conflict on Savills and the UK Property Market
May 13 (Reuters) - British property company Savills warned on Wednesday of a slowdown in residential property transactions in its UK and Middle East markets, as the Iran war fuels uncertainty around global interest rates, even as it retained its 2026 forecasts.
Transactional Business and Market Caution
In the transactional business, which provides capital and leasing advisory services to commercial and residential investors and owner-occupiers and is Savills' largest contributor to revenue, the firm said it expected delays in transactions and buyers to be more cautious.
Global Market Uncertainty
The U.S.-Israeli war against Iran has roiled global markets, raising concerns around higher-for-longer interest rates, elevated energy costs and tighter household budgets, putting pressure on property firms including house builders, rental agencies and related service providers.
Regional Performance: UK and Middle East
"Within our key UK market... we have seen greater caution among both buyers and sellers since the onset of the Middle East conflict," the firm said, adding that performance in its Middle East market, which contributed about 5% to its 2025 underlying profit, had also "slowed materially" during the crisis.
Financial Performance and Strategic Moves
Despite the warning, the firm said it was trading marginally ahead of its expectations for the year ending December 31, with both revenue and profit predicted to grow on an annual basis. In 2025, its revenue rose 6% with underlying profit before tax increasing 11.4%.
Acquisition of Eastdil Secured
In March, Savills agreed to buy real estate investment bank Eastdil Secured in a $1.1 billion deal, including debt, in a bid to expand in North America and deepen its capital markets presence.
Reporting Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich and Kate Mayberry)
