Interim Management Statement

Savills PLC
07 May 2008

                                  SAVILLS PLC
                          ('Savills' or 'the Company')


                          Interim Management Statement





Savills, the international property adviser, publishes its Interim Management
Statement for the three months ended 31 March 2008.


Overview

When we announced our results for the year ended 31 December 2007, the Chairman
reported that 2008 would be a challenging year for the property industry
worldwide. He noted, however, that not all segments and geographies would be
affected equally. Trading in the first three months of 2008 has borne this out.

Trading conditions for our UK and US Commercial Capital Markets businesses and
our UK Residential and Mortgage Broking businesses have continued to be
challenging with volumes down on the comparable period in 2007. Our
Transactional businesses in Europe see more signs for optimism but transactions
are currently taking longer to complete as financing becomes more difficult to
obtain. Our Transactional businesses in Asia continue to be more resilient.
Demand for our Consultancy, Property Management and Fund Management services,
although not totally immune to the impact of the credit squeeze, remained good.





Main Business Streams


Transactional

The UK commercial property investment markets have seen further rises in yields
in the first quarter, although at a much slower rate than was seen towards the
end of 2007.  An increasing number of investors now perceive London as being at
or close to fairly priced and we are seeing more buyers, both domestic and
international, looking for prime investment opportunities.  As redemptions have
slowed from the retail funds, there have been fewer vendors in the market, and
this has impacted negatively on investment volumes in our UK Transactional
businesses.

Tenant demand has been fairly resilient across most sectors. However, demand in
the City of London office market has reduced significantly and retailer demand
is subdued across the UK.

In the UK residential markets, we have seen prices fall in both London and the
Country. Savills Prime Central London index reported a fall of 1.5% in the first
quarter, which followed a 2% fall in the final quarter of 2007. In prime
regional markets, prices have generally been more robust with small falls of
0.5% in Q1 2008. The current uncertainty has led to a sharp fall in transaction
volumes for our Residential business in London, with less dramatic falls in the
Country.

Across mainland Europe, while commercial investment volumes have been lower than
last year, transactions are still occurring across all sectors, with a heavy
focus on prime property with good fundamentals.  The last six months has seen an
end to yield hardening in most European markets and an increasing polarisation
between prime and secondary asset pricing.  Tenant demand has generally held up
well across all commercial property sectors in Europe. Overall, our European
Transaction businesses are seeing volumes down as deals take longer to complete.

Many of the long-term drivers which have attracted investors to Asia remain,
including population growth, rapid household formation, urbanization rates and a
burgeoning middle class.  Asia's strength at a time of market adjustment
elsewhere is attracting international capital into the region, with China
benefitting in particular. Occupier markets remain robust, as firms continue to
expand. Our Asian Transaction businesses have had an excellent quarter.

In the US, Savills Granite has continued to perform in line with our
expectations. We have seen our first cross-border transaction with a European
investor buying in New York.



Consultancy

Our Consultancy businesses in the UK have performed well. In these more
uncertain times, due to Savills size and reputation, demand for valuations has
been at record levels and housing consultancy has traded strongly. In Europe,
our Valuation teams have continued to win new business. In Asia, we had strong
performances, in particular, from our Consultancy businesses in China and
Australia.


Property and facilities management

Our Commercial Property Management businesses in the UK have performed well
continuing the momentum from the second half of 2007. Our European Property
Management business has seen continued growth in Germany and Holland.  Our Asian
Property Management businesses have had a good first quarter, with strong
performances in Hong Kong, Singapore, Australia and China, although cost
pressures continue.


Financial Services

The credit squeeze has had an impact on the main residential mortgage broking
division with new mortgage completions down on the equivalent period in 2007.
Remortgaging, however, remains steady.


Fund Management
Cordea Savills has continued to perform well, announcing the launch of the
Turkey Property Ventures Fund. Revenue was ahead of the first quarter of 2007
reflecting the higher opening funds under management.



Outlook

The outlook for our UK, European and US Capital Markets, UK Residential and UK
Mortgage Broking businesses continues to depend on how quickly confidence
returns to financial markets. However, our Transaction businesses in Asia
currently appear less affected by the credit squeeze. Our Consultancy, Property
Management and Fund Management businesses, which contributed about 40% of our
profits for 2007, whilst not totally immune to the impact of the credit squeeze,
continue to enjoy good demand for their services. As in previous years, the full
year outcome will be heavily weighted towards the second half.





For further information, contact:


Savills                                                   020 7409 8844
Jeremy Helsby
Mark Dearsley

Citigate Dewe Rogerson                                    020 7638 9571
Simon Rigby
Sarah Gestetner
George Cazenove






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