The construction cost index in the Kingdom of Saudi Arabia rose by 2.7% during June 2026 compared to the same period in 2025, according to data from the General Authority for Statistics.

The construction cost index reached 104.0 points in June last year based on the base year 2023, compared to 101.2 points in June 2025. The Authority stated that the increase is primarily due to a rise in construction costs for the residential sector by 2.6%, and construction costs for the non-residential sector by 3.1%.

Annual Increase

The construction cost index in June 2026 increased on a year-on-year basis, driven by a rise in equipment and machinery rental costs by 5%, energy costs by 3%, in addition to an increase in labor costs by 2.6%.

Data on construction costs by sector for June 2026 showed a continued increase in both sectors, with the residential sector - which holds the largest weight at 77.5% - recording a growth of 2.6% compared to June 2025. This increase was driven by a rise in equipment and machinery rental costs by 4.5%, energy costs by 3%, labor by 2.5%, and basic materials by about 1.8%.

Higher Growth

As for the non-residential sector, it experienced a higher growth of 3.1% year-on-year, attributed to an increase in equipment and machinery rental costs by 6.7%, as well as a rise in energy and labor costs by 3% each, in addition to a growth in basic materials by 1.9%.

The Statistics Authority defines the construction cost index as a relative number that measures the change in construction costs over two time periods for a basket of construction materials and construction services, and it is considered an important indicator relied upon by planners and researchers in the fields of development and production.

The construction cost index in the Kingdom of Saudi Arabia rose by 2.7% during June 2026 compared to the same period in 2025, according to data from the General Authority for Statistics.

The construction cost index reached 104.0 points in June last year based on the base year 2023, compared to 101.2 points in June 2025. The Authority stated that the increase is primarily due to a rise in construction costs for the residential sector by 2.6%, and construction costs for the non-residential sector by 3.1%.

Annual Increase

The construction cost index in June 2026 increased on a year-on-year basis, driven by a rise in equipment and machinery rental costs by 5%, energy costs by 3%, in addition to an increase in labor costs by 2.6%.

Data on construction costs by sector for June 2026 showed a continued increase in both sectors, with the residential sector - which holds the largest weight at 77.5% - recording a growth of 2.6% compared to June 2025. This increase was driven by a rise in equipment and machinery rental costs by 4.5%, energy costs by 3%, labor by 2.5%, and basic materials by about 1.8%.

Higher Growth

As for the non-residential sector, it experienced a higher growth of 3.1% year-on-year, attributed to an increase in equipment and machinery rental costs by 6.7%, as well as a rise in energy and labor costs by 3% each, in addition to a growth in basic materials by 1.9%.

The Statistics Authority defines the construction cost index as a relative number that measures the change in construction costs over two time periods for a basket of construction materials and services, and it is considered an important indicator relied upon by planners and researchers in the fields of development and production.