Saudi construction costs rose 2.2% year on year in September
Saudi Arabia’s construction costs increased by 2.2% year on year in September 2026, according to the General Authority for Statistics (GASTAT). The authority’s Construction Cost Index (CCI) recorded increases in both residential and non-residential construction. Compared with September 2025, non-residential costs rose by 2.6%, while residential costs increased by 2.1%.
In residential construction, basic material costs rose by 1.7% year on year. Timber and joinery prices increased by 3.5%. Equipment and machinery rental costs rose by 4.1%, including a 5.5% increase in rentals for equipment and machinery with an operator.
Residential labor costs increased by 1.5%, while energy costs rose by 3%. These figures show the annual changes in several of the main residential construction cost components tracked by the index.
In non-residential construction, equipment and machinery rental recorded the largest increase among the main cost components, rising by 5.8%. Rentals for equipment and machinery with an operator increased by 7.2%.
Non-residential labor costs rose by 2%, and energy costs increased by 3%. Basic material costs increased by 1.8%, including a 4.3% rise in other building material prices and a 2.1% increase in timber and joinery prices.
Despite the annual increases, the overall CCI was unchanged in September compared with August 2026. GASTAT said this reflected stable costs in both residential and non-residential construction over the month.
The index tracks price movements across 51 construction input items. GASTAT collects data monthly from 13 regions through field visits to contractors’ offices, engineering offices and construction material sales establishments.
The CCI uses 2023 as its base year and is published monthly. The September figures therefore provide an official monthly measure of construction input price movements, alongside the annual comparisons for the two sectors.
