Market downturn likely until 2010, says DTZ

Source: Construction Digital

Date :05/09/2008 09:26:14

DTZ Holdings plc, one of the world’s largest real estate groups, has said that the economic consequences of the credit crunch and rising inflation will be felt until 2010 at least.

In a statement released yesterday, September 5, the company reported that revenue for 2007/08 increased substantially by 44 percent to £446.3 million, boosted by the impact of acquisitions and organic growth of 15 percent.

Despite this increase, however, profit before tax and exceptional items reduced by 46 percent to £20.6 million, which DTZ attributed largely to a change in the mix of its income streams, with much of the firm’s capital markets business particularly affected by difficult economic conditions.

The company went on to say that it predicts that the market will continue to struggle for the next year or two.

“The global economy is now so integrated that it is unlikely that one region can effectively decouple from another,” said Tim Melville-Ross, Chairman of DTZ.

“However, the varying economic conditions in different parts of the world is providing a degree of protection to organisations like DTZ that have the capability to operate a broad range of activities across most global markets.”