Knight Frank has announced its annual financial results reporting a record £392.7m turnover and £136.6m profit, for the year ended 31 March 2014.
Alistair Elliott, group chairman and senior partner of Knight Frank, commented: “I am pleased to report such a strong set of results this year. We have achieved a 33% increase in profit, notwithstanding substantial investment in the business including recruitment of the best people to facilitate our global growth. Through a mixture of organic growth and trophy deals we have gone from strength to strength, enhancing our international footprint and client base.
“In the UK there is a sustained lack of new housing stock, particularly in London, which serves only to keep the pressure on house prices. Indicators of increasing supply in some quarters will help normalise certain markets and help to address demand. With the Scottish referendum now over, and as the general election approaches, the most helpful thing for the markets will be clarification on both housing policy and key infrastructure projects and the simplification of the planning process, not least by more resourcing.
“There is still a surfeit of investment capacity ready to target the global property markets; indeed, the signs are that such investment will continue – the challenge has shifted towards identifying where value can be best secured.
“Key global cities and alternative sectors will feature heavily on investors’ radars for the remainder of 2014 and the majority of 2015. Value for money will increasingly be found outside traditional centres, where higher yields can be achieved and we expect a growing trend towards development. In addition, occupier markets are now much more dynamic with far greater depth and breadth than we have seen for several years.
“This combination of weight of money, growing occupier demand and the resultant pressure on rents, promises one of the most exciting periods in real estate for a decade. That said, the variances around the world have never been greater.
“In this environment, I believe Knight Frank is poised for what will be the most exciting stage of growth in its recent history combining residential, commercial and international expertise with effective collaboration amongst our teams. Our businesses in India, Australia and the Middle East have, over the past 12 months particularly, increased momentum.
“Our priorities for the coming year are to build on what we have achieved, continue to recruit more exceptional people, expand in the Nordic region, grow our German platform, develop our foundation in China and continue to expand the partnership’s residential network in London.”