The Real Estate Services industry reported good revenue growth w ith a marginal decline in quarterly net profit compared to the first quarter but unfavourably compared to the second quarter, which saw a high increase in advisory and property development industries. However, revenues increased 3% year on year to end, beating analysts’ forecasts, who predicted a decline in revenues in the second half of the year. Revenue generated from Real Estate Services in the United Kingdom now accounts for approximately 11% of the entire market for commercial properties in London. There has been a considerable increase in the number of commercial properties that have been developed or are in the pipeline. This has led to a parallel increase in the number of transactions. See it here on our website.
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Revenue for the first quarter of the year was relatively strong in comparison to other periods with revenue decreasing six percent year on year, however, an increase in value for the EUR billion Euro (EUR) was seen as against a decline in the original EURm 6.2 billion in the first quarter of the last financial year. The main contributors to this quarter’s revenue increase were the London property developments with the South West Quarter recording the largest increase of around six percent while Basement Companies in Canary Wharf and Retail Development in Knightsbridge both registered an increase of three percent respectively. The only area where growth was seen was in the commercial office sector with revenues dropping five percent year on year, but this was mainly affected by the announcement of a further twelve thousand jobs in London.
Revenues in the second quarter of the year rose to seven percent from six percent, the highest growth rate registered during the reporting period. Although this was a slightly weaker than expected performance compared to the first quarter, it followed an increase of eleven thousand new job and an addition of four thousand new commercial property developments. This growth was helped by higher revenues from both commercial and residential properties with revenues increasing by four percent in the North of England and three percent in the South of England. One of the factors which has had a major influence on the figures is the weakness in the global economy, particularly in the United Kingdom and the Euro as well as tighter mortgage lending rules and increased uncertainty in financial markets. Other factors which can have had an impact are the weather in some parts of the world and the seasonality of the tourist season in many locations.