Construction costs in Saudi Arabia increased by 2.6% during May 2026

Record the construction cost index in Residentialby 2.5%, and construction costs for the non-residential sector increased by 3.0%.

Construction costs

The residential sector index witnessed an increase on an annual basis of 2.5% as a result of an increase in the costs of renting equipment and machinery by 4.7%, driven by an increase in the costs of renting equipment and machinery with an operator by 6.3%, as well as an increase in labor costs by 2.5% compared to May 2025, and an increase in energy prices by 3.0%.

The costs of Basic materials increased by 1.6%. This is due to an increase in the prices of wood and carpentry by 3.6%, and the prices of other building materials by 2.6%.

The index for the non-residential sector recorded an increase on an annual basis of 3%, compared to the corresponding month of 2025 AD. This increase is due to an increase in the costs of renting equipment and machinery by 6.7%, driven by an increase in the costs of renting equipment and machinery with an operator by 1.6%. 8.5% and an increase in labor costs by 3.0%, as well as an increase in energy costs by 3.0%.

The costs of basic materials increased by 1.6%, and this increase came as a result of the increase in the prices of other building materials by 3.7%, and the prices of wood and carpentry by 2.3%.

Increase on a monthly basis

The construction cost index for May 2026 increased by 0.2% compared to April. In the past, this is mainly due to an increase in the costs of the residential sector by 0.2% and the costs of the non-residential sector by 0.3%.

The Construction Cost Index (CCI) reflects price movements in the costs of construction inputs and consists of 51 items, the prices of which are collected monthly from thirteen regions through field visits to contractors’ offices, engineering offices and establishments selling building materials. The year 2023 AD has been set as a base year, and CCI statistics are published. On a monthly basis.

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