How Trump’s tariffs affected property deals across the world

Uncertainty about future policy decisions and their effect on global trade has weighed on businesses

Global property markets have cooled in recent months as businesses grapple with the uncertainty surrounding US President Donald Trump’s trade policies, according to real estate group Savills.

The firm noted a slowdown in transactions since April, following Mr Trump’s announcement of increased tariffs on international exports.

While some of these tariffs have been rolled back following recent trade agreements with the UK and China, easing trade tensions, lingering uncertainty about future policy decisions continues to affect businesses.

This hesitation is reflected in recent survey data indicating that companies are postponing major spending decisions until the trade landscape becomes clearer.

Savills predicts that the impact of these tariffs will likely result in stagnant global property transactions for the first half of 2025 compared to 2024 figures. However, the firm anticipates a market rebound in the latter half of the year as trade policies solidify and greater certainty returns.

But the firm highlighted a “good start to the year” with a healthier pipeline of potential property purchases than this time last year.

Savills reported a short-term decline in property transactions in its global markets since April, following Mr Trump’s announcement of higher tariff rates on exports from around the world (PA Wire)

The London-listed group specialises in commercial and residential real estate and also offers consultancy and property management services.

It has offices around the world but makes its biggest revenues in the UK, which topped £1 billion in the region last year.

Savills said the UK market has been doing better than last year, with house-buyers rushing to complete purchases ahead of stamp duty relief being cut from April.

It also reported a surge in interest among investors for offices in most major cities across Europe.

Chief executive Mark Ridley said: “We have had a good start to the year with performance comfortably ahead of the prior year, reflecting progressive recovery in most markets.

“The current macro-level uncertainty is clearly having a near-term impact on transactional activity, as investors and corporates digest the potential effects of recent events.

“However, I am confident that the underlying trajectories for our transactional businesses are substantially improved year on year.”