"The attack on Iran is causing considerable uncertainty in the financial and commodity markets in the short term – and this is also affecting the real estate and construction industries."

"The attack on Iran is causing considerable uncertainty on the financial and commodity markets in the short term – and this is also affecting the real estate and construction industries. The decisive factor here is not so much an immediate slump in the economy, but a sharp – and perhaps temporary – increase in risk premiums, energy price expectations and financing costs. Investors and project developers initially react with restraint in such phases. If the conflict were to be limited to a few weeks, the effects would be mainly temporary: transactions would be postponed and construction projects would be recalculated, but not abandoned. The industry would be dampened by higher volatility and cost uncertainty, but not a structural shock. Solidly financed, high-use properties are likely to survive the phase well, while highly leveraged or low-margin projects remain more vulnerable."