Construction costs in Saudi Arabia increased by 2% during March 2026
Record the construction cost index in Residentialan increase on an annual basis of 1.9% as a result of an increase in the costs of renting equipment and machinery by 4.5%, driven by an increase in the costs of renting equipment and machinery with an operator by 6.1%, as well as an increase in labor costs by 2.7% compared to March 2025, and an increase in energy prices by 3%.
The costs of basic materials witnessed an increase of 0.3%, driven by an increase in cement and concrete prices by 0.4%, and wood and carpentry prices by 1.3%.
The non-residential sector index recorded an annual increase of 2.2%, compared to the corresponding month in 2025 AD.
This increase is due to an increase in the costs of renting equipment and machinery by 5.9%, driven by an increase in the costs of renting equipment and machinery with an operator by 7.8%, and an increase in labor costs by 2.9%, in addition to an increase in energy costs by 3.0%.
The costs of basic materials increased by 0.3%, driven by an increase in the prices of plastic products and glass by 1.8%, and the prices of wood and carpentry by 1.2%.
Increase in construction costs
On a monthly basis, the construction cost index for the month of March 2026 witnessed an increase by 0.6% compared to last February.
This is mainly due to an increase in residential sector costs by 0.6%, and non-residential sector costs by 0.7%.
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