CBRE’s fourth quarter results were affected by “a decline in market volumes in the United Kingdom”.
The world’s largest agency firm said that: “While investor interest in United Kingdom property remains strong, with cap rates stable and rental rates increasing in the fourth quarter, capital has been migrating to continental Europe as the economies there strengthen and property yields are higher”.
The news comes at a time of caution among many in the UK market amid volatility in commodities and equities markets since the start of the year.
CBRE went as far as separating the performance of its capital markets businesses globally with and without the UK. Global property sales rose 1% including the UK in the fourth quarter and 6% without.
Despite this, Martin Samworth, chief executive of CBRE EMEA, said that the UK business overall had a “very strong” 2015 and fourth quarter. It maintained its position as the leading investment agency in central London with a 42% market share and was ranked the msot active for office elasing and acquisitions.
Samworth added: “Prospects for the UK look positive for 2016. With rising employment, rising real wages due to low inflation, plus low interest rates and low oil prices, the UK has a strong occupier market which will be resilient to the volatility being experienced by the global markets. So UK real estate investment is likely to remain at or around the same levels seen in 2015.
For the year, globally CBRE reported a 20% increase in revenue during 2015 to $10.9bn (£7.5bn). The company also saw a 14% increase in fee revenue to $7.7bn. This resulted in adjusted earnings per share rising by 19% to $0.81.
During the fourth quarter CBRE saw EMEA revenue increase by 60% to $1.2bn. Fee revenue rose 26% to $687.7m.
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