Geopolitical tensions from the Iran war are creating ripple effects across commercial real estate markets, according to industry leaders at the PERE Network Asia Summit. While direct impacts remain limited, concerns over rising oil prices, inflationary pressures, and interest rate volatility are prompting investors to reassess global real estate values. Some firms are pausing Middle Eastern expansion plans while others focus on regional diversification.

Morgan Stanley Real Estate Investing has raised $2.88 billion for its North Haven Real Estate Fund XI Global, exceeding halfway toward its $4 billion target. The fundraising success marks a significant milestone, with one-third of investors being new to Morgan Stanley's platform. The fund closed faster than industry averages, which have stretched to 25 months for private real estate managers in 2025.

KKR is grappling with scalability challenges as its real estate assets under management grew ninefold to $84.6 billion, with 72% concentrated in the US. The firm is repositioning its global business after underperformance in Europe and Asia, while Dutch residential fund Vesteda faces a €4.1 billion redemption wave following tax regime changes. Meanwhile, Northern Horizon acquired six Swedish care homes for €120-150 million, betting on demographic demand and municipality-backed cashflows in Nordic social infrastructure.