Estate agent Savills PLC on Wednesday said it is ‘confident’ for 2022 despite the backdrop of geopolitical, economic, and Covid-19-related challenges.

Chief Executive Mark Ridley said the company, which holds its annual general meeting on Wednesday, has performed well so far this year, noting a strong showing for its UK business.

‘Overall, the UK has traded slightly better than anticipated,’ the company said.

Ridley also cited Savills’ ‘strong’ balance sheet and business development activities.

However, he noted a number of challenges, including geopolitical tensions amid the war in Ukraine, supply chain issues and in some areas, continued Covid restrictions.

While Savills highlighted a recovery in the Asia Pacific region, Greater China’s performance has been below original expectations for 2022.

Since April, China’s biggest city Shanghai has been almost entirely sealed off. Most of its 25 million residents have been confined to their homes with the city the epicentre of China’s worst Covid outbreak to date.

‘Continued Covid and travel restrictions, particularly in Hong Kong and Mainland China have reduced activity in both the leasing and capital transaction markets,’ said Savills.

In Continental Europe & the Middle East, supply chain issues, inflation, and rising interest rates pose a challenge - though the company said performance for this division has been above expectations in the year-to-date.

Despite geopolitical risks and Covid concerns, the board remains ‘confident’ in its expectations for 2022.

Shares in Savills were trading 2.0% higher in London on Wednesday morning at 995.50 pence.

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