UK's Savills expects reduced transactions due to Middle East war (updated)
13/05/2026 07:29
Rewrites throughout with details, background and context Firm says Middle East market has 'slowed materially' since Iran war started Also notes UK buyers and sellers are more cautious Despite slowdown, Savills says trading ahead of expectations for 2026 Firm retains revenue and profit growth forecasts for year May 13 (Reuters) - British property company Savills SVS.L 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. 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. 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. "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. 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%. 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 by Prerna Bedi in Bengaluru; Editing by Rashmi Aich and Kate Mayberry) ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))