The escalating Middle East conflict forced high-profile investors to abandon Singapore's PERE Asia Summit 2026 even before its start. Qatar Investment Authority and Mubadala Investment Co. withdrew due to airspace disruptions following US and Israeli strikes on Iran. Panelists, including BlackRock's Hamish MacDonald, warned clients are 'very scared' as political risk dominates discussions, with MacDonald stating 'nothing is locked in on the capital raising or deal front.' Canadian pension fund La Caisse, previously eyeing Middle East real estate, now plans to 'pause and see what happens.'

Off-stage, fund managers expressed deeper fears: a prolonged war could spike inflation and borrowing costs, potentially deterring new deals. A Bloomberg gauge of Asian developed market real estate stocks fell around 4%, reflecting broader anxiety. Hong Kong closely follows US rate moves, while Singapore's currency policy makes local borrowing costs sensitive to US swings. The summit concluded amidst plunging Asian stock markets, fueled by surging oil prices and AI concerns.

Despite the crisis, pessimism about mainland China's property market persisted, with investors calling it 'completely uninvestible' due to ongoing geopolitical tensions and a four-year slump.