The construction cost index in Saudi Arabia rose by 2.7% year-on-year in June 2026, compared to the same month in 2025, driven by a 2.6% increase in residential construction costs and a 3.1% increase in non-residential construction costs.

According to data from the General Authority for Statistics released today (Wednesday), the construction cost index rose by 0.1% in June 2026 compared to May 2026, due to a 0.1% increase in both residential and non-residential construction costs.

The residential construction cost index recorded an annual increase of 2.6%, driven by a 4.5% rise in equipment and machinery rental costs, resulting from a 6.2% increase in rental costs for equipment and machinery with operators.

Labor costs rose by 2.5%, energy prices by 3%, while basic material costs increased by 1.8%, supported by a 3.8% rise in wood and carpentry prices and a 2.8% rise in other construction materials.

In the non-residential sector, the index rose by 3.1% year-on-year, driven by a 6.7% increase in equipment and machinery rental costs, due to an 8.4% rise in rental costs for equipment and machinery with operators.

Labor costs increased by 3%, energy prices by 3%, while basic material costs rose by 1.9%, driven by a 4% increase in other construction materials and a 2.4% increase in wood and carpentry prices.