The real estate industry is facing a difficult year ahead, according to a recent report from Savills. The report shows a decrease in profits for the company, with a fall of 10% in the first quarter of 2020. This is a worrying trend for the industry, as it indicates that the current economic climate is having a negative effect on the sector.
The report states that the decline in profits is due to a number of factors, including lower demand for property, reduced consumer confidence, and the impact of Brexit. The company has also seen an increase in costs associated with running its business, such as higher wages and increased marketing costs.
The report also highlights the fact that the market is becoming increasingly competitive, with more companies entering the sector. This is putting pressure on existing companies to reduce their prices in order to remain competitive. This is likely to have a further negative impact on profits, as companies are unable to pass on the cost increases to customers.
The report also notes that the current economic climate is making it difficult for companies to access finance. This is making it difficult for them to invest in new projects and expand their operations. This could have a long-term effect on the industry, as it could lead to fewer opportunities for growth.
Overall, the report paints a worrying picture for the real estate industry. The decrease in profits and increased competition are likely to have a negative impact on the sector in the short-term. However, it is important to remember that the industry is resilient and has weathered difficult times before. With the right strategies in place, companies can still succeed in this challenging environment.