Savills scales back international property presence

Savills is scaling back its international property presence this month, as the Euro debt crisis continues to plague businesses as well as property buyers.

The international agent will reduce its presence in various countries across the continent in response to financial concerns, as some European markets fail to provide a return on their real estate.

“Peripheral countries” scaled back

The company will focus on its main markets of Germany, France, Poland and Sweden, reports This Is London, and “peripheral countries” will see Savills’ services scaled back, while London continues to offer the company respite.

Indeed, a report today from Easyroommate.co.uk found that UK rents are the highest in Western Europe, with London’s average of £520 per month the most expensive on the continent. The soaring house prices and increasing rental rates are turning the UK, and London, into the ideal buy to let market, as buyers have nowhere else to turn.

"Flatsharers in the UK face much higher bills at the end of the month than their European counterparts,” comments Jonathan Moore, director of Easyroommate.co.uk. The combination of unaffordably high house prices with the ongoing lending crunch in the UK is leaving hundreds of thousands of frustrated buyers dependent on rental accommodation.”

City lettings are quiet at present, but Savills is confident that a new wave of stock will attract overseas interest as foreign investment drives London’s property market – the UK capital has long been seen as a safe haven for real estate in contrast to other European economies.

2011 “in line with expectations”

The company is still expecting to hit its targets for the year, and remains pragmatic about the wider markets.

"We do see a reduction in volumes in some regional pipelines but any short term risk in our principal commercial markets is more related to the timing of completions than to a lack of underlying activity.

"We currently anticipate that, provided macro-economic concerns do not cause a material delay in transactions, our performance for the full year will be in line with expectations."

Are you looking to buy property in UK ? Hurghada , Scotland , Istanbul , Sahl Hasheesh , Dubai

Are you looking to rent property in UK ? London , Manchester , Reading , Leeds , Cardiff