Most would think that the chance that an estate agent is highly profitable right now is highly improbable. That couldn’t be further from the truth for one real estate agent in the UK and that is Knight Frank. The agency, which deals property on the residential as well as commercial side, have reported soaring profits during the first quarter of this year. The actual figures look like this; 168% profit over the course of Q1 with total profit of almost 60 million pounds.
The group manages property deals out of 209 offices, in 43 different counties. Believe it or not, the bulk of the profits came from a surge in UK residential business. Not surprisingly, the big numbers also came from a planned expansion into Asia.
Nick Tomlinson, senior partner of the Knight Frank Group, mentioned putting away the surplus in funds for the rocky days which lie ahead. He commented on the success of the group during the first quarter, and what the near future looks like, saying: “”The improved performance of the group has continued in the first half of the current financial year. Nonetheless, we remain cautious about the outlook for the full year given prevailing economic uncertainties around the world.”
The over-the-top financial performance has the staff especially excited, as bonuses and commissions will easily surpass 35 million pounds. This is up from about 15 million of last year.
The improbable success if the first quarter is also because of the resurgence in the prime London market, the group said.
Tomlinson further discussed global residential property, saying: “”As we move through the second half of 2010, evidence from our office network confirms that the bounce in global residential property markets, which has been partially driven by Government stimulus measures, appears to be slowing.
“While trading has slowed since Q2 this year, in the UK and in Europe, there is still a healthy level of demand for the best properties in the prime areas.”