During the first half of 2026, the macroÂeconomic environment in Asia Pacific has been dominated by the Iran conflict and elevated crude oil prices. While the impact varies across the region, inflationary pressures have been building since the start of the conflict. The regional economic outlook hinges on the resolution of the Iran conflict and the speed of normalisation of oil prices from current levels.
Sector performance and outlook
Diverging outlook across Asia Pacific office markets: Overall office leasing demand across Asia Pacific remains resilient, with tenants continuing to favour newer and higher-quality buildings in core locations. Regional prime rental growth was healthy, led by Japan’s office sector — the top-performing market in Asia
