Knight Frank increases profits, despite volatile markets and politics
Estate agent Knight Frank increased its profit before tax by 14 per cent last year, seeing off challenges from volatile markets and politics.
The company increased turnover by £50m to £526m in the year ending March – a ten per cent rise.
The increase is payoff for its investment in staff over the last five years, the company said.
Chair Alistair Elliott said Knight Frank had faced challenges in the UK.
He called on the government to recognise the “barriers” to real estate investment.
“We need an urgent review of business rates, especially for the high street.
“We need to streamline the planning process, and focus particularly on how this might assist the required rejuvenation of those high streets where traditional retail is no longer an option.
“We believe there is huge potential to reintroduce more homes above shops and a strong chance this may ultimately lead to a much-needed transformation of some high streets and communities,” Elliott said.
He also said the government’s proposed stamp duty for overseas buyers will create uncertainty and reduce market liquidity.
Despite these challenges, the company produced “encouraging results” in the UK, he said.
Knight Frank posted record years in Singapore, Hong Kong and Germany as it focused on 12 “gateway cities” which it sees as vital to the business.
In Europe, trends toward coworking has changed how office space is rented, and caused a squeeze on supply, Knight Frank said.
Its Middle Eastern customers are benefiting from rising oil prices which will drive property investment this year, the company said.
It also expects more investment from well-stocked private equity.
In Asia a boom in e-commerce has increased demand for logistics warehouses, while traditional retail is struggling.
Elliott said the company’s growth is “a tribute to the quality of our teams across the globe.”