Savills has reported a slow-down in global transactions amid macroeconomic and geopolitical uncertainty, according to a statement ahead of its annual general meeting (AGM) today.

Despite a strong start to the year, the firm said the impact of US president Donald Trump’s tariffs on deal execution in Q2 is likely to limit its first-half performance to a similar level as H1 2024, when it returned to growth on the back of a challenging 2023 amid steep interest rates and inflation.

However, Savills said the slowdown would be a short-term one as it expects a recovery when sentiment becomes more certain and market conditions improve in the second half of the year.

In the meantime, the group said it will continue to develop its business through selective recruitment and acquisitions, supported by a “strong balance sheet”.

Savills added that despite market uncertainty, there was still “significant investor interest” in the secure income characteristics of real estate.

During the first quarter of the year, Savills improved its global capital transaction revenue by 7%, particularly in the EMEA region, and, with some exceptions, values have largely recovered in most prime markets.

The group also reported “renewed investor interest” in prime core office stock throughout Europe and said demand can be seen across most major cities.

Meanwhile, most prime residential markets had remained resilient, with the UK performing better than last year ahead of the increase in Stamp Duty at the start of April.

Savills said its leasing revenues grew over 20% in Q1 as markets continued to be more active across most sectors.

Chief executive Mark Ridley said: “We have had a good start to the year, with performance comfortably ahead of the prior year, reflecting progressive recovery in most markets. The current macro-level uncertainty is clearly having a near-term impact on transactional activity, as investors and corporates digest the potential effects of recent events.

“However, I am confident that the underlying trajectories for our transactional businesses are substantially improved year-on-year. I am delighted with the performance of our teams worldwide in helping clients navigate these circumstances and in seeking longer-term business development initiatives, which our strong balance sheet enables us to pursue.”