Developers Slow Down New Projects Amid Iran versus US-Israel Conflict

Jakarta — The conflict between Iran, the United States and Israel is beginning to impact the domestic property sector.

Developers are reportedly tending to slow down the launch of new projects, though this has not yet reached the stage of total suspension (hold).

“It may be slowed down, not immediately put on hold,” said Bambang when contacted by Kompas.com on Monday (2 March 2026).

According to Bambang, the most directly felt impact comes from the rise in fuel prices, which has triggered a surge in transport costs.

“The direct impact is more related to transport costs. Because with fuel rising, haulage costs increase. Whereas all construction materials are heavy—such as cement, sand, steel, ceramics and so on—these will affect construction costs,” said Bambang.

The increase in distribution costs for such materials will, he continued, automatically drive up property selling prices. Particularly if the war drags on and global oil prices return to three-figure levels per barrel.

Bambang even suggested that oil prices could spike sharply if the conflict does not quickly ease.

“Oil is forecast to rise tenfold if the war is prolonged. Property immediately has no price,” he said.

Beyond the direct impact on construction costs, Bambang also highlighted the indirect effect of global economic instability.

“Ultimately, there will be many redundancies, purchasing power will decline, and the property market will also be hit. Prospective property buyers will wait and see,” Bambang said.

Earlier, Kompas.com reported that Iran was attacked by Israel and the United States on Saturday (28 February 2026) local time.

Israel was the first party to confirm that the nation officially attacked Iran.