Economy

Statistics: 2.7% rise in construction costs

Madinah - Riyadh

Publish date: July 23, 2026 01:40 KSA

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

According to data from the General Authority for Statistics released yesterday, the construction cost index rose by 0.1 percent in June 2026 compared to May 2026, as a result of a 0.1 percent increase in construction costs in both the residential and non-residential sectors. Labor costs also rose by 2.5 percent, energy prices by 3 percent, while basic material costs increased by 1.8 percent, supported by a 3.8 percent rise in wood and carpentry prices and a 2.8 percent rise in other construction materials.

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

Construction labor energy wood carpentry statistics equipment materials