Media Centre

Saudi Arabia’s construction costs rise 2.3% in July 2026

RIYADH — Saudi Arabia’s Construction Cost Index (CCI) increased 2.3 percent year-on-year in July 2026, mainly due to higher construction costs in both the residential and non-residential sectors, according to the General Authority for Statistics (GASTAT).

Construction costs in the non-residential sector rose 2.6 percent compared with July 2025, while costs in the residential sector increased 2.2 percent.

In the residential sector, the annual increase was driven by a 4.2 percent rise in equipment and machinery rental costs, mainly due to a 5.7 percent increase in the cost of renting equipment and machinery with operators.

Energy costs increased 3 percent, while basic materials rose 1.8 percent and labor costs increased 1.4 percent.

The rise in basic material costs was supported by a 3.9 percent increase in timber and joinery prices and a 2.8 percent increase in other building materials.

In the non-residential sector, equipment and machinery rental costs recorded a 5.8 percent annual increase, driven by a 7.3 percent rise in the rental of equipment and machinery with operators.

Energy costs increased 3 percent, labor costs rose 1.8 percent and basic materials costs increased 1.8 percent.

The increase in basic materials reflected a 4 percent rise in other building material prices and a 2.5 percent increase in timber and joinery prices.

On a monthly basis, the overall Construction Cost Index remained stable in July compared with June, reflecting stable costs in both the residential and non-residential sectors.