Middle East conflict risks fueling inflation in property sector

Construction of new office space in ​Europe has slumped to its lowest in a decade, even as rents in prime locations hit ‌record highs, research shows, deepening a supply crunch that is forcing many occupants to stay put.

The conflict in the Middle East poses further risk to the sector’s outlook as rising energy prices could add to inflationary pressure, according to a report by property agency Cushman & Wakefield.

After ​emptying out during the COVID-19 pandemic, offices...