Saudi Arabia’s construction costs rose 2.3% year on year in July, driven by higher equipment and machinery rental charges across residential and non-residential projects, according to the Kingdom’s official data.
The Construction Cost Index, published by the General Authority for Statistics (GASTAT), showed residential costs increasing 2.2% annually, while non-residential costs rose 2.6%. The overall annual growth eased from 2.7% in June but remained above the 0.7% recorded in July 2025.
The latest increase in the Kingdom’s construction costs comes as the Gulf major continues to advance major housing, infrastructure, and development projects under the “Vision 2030” socio-economic diversification agenda.
“CCI remained stable in July 2026 compared to June 2026,” the GASTAT report said, attributing the monthly result to unchanged overall costs in both the residential and non-residential sectors.
“Equipment and machinery rental costs in the residential sector increased 4.2%, mainly because the cost of hiring equipment with operators rose 5.7%. Residential labor costs increased 1.4%, while energy prices rose 3%. Basic material costs climbed 1.8%, reflecting increases of 3.9% in timber and joinery prices and 2.8% in other building materials,” the data noted.
As per the GASTAT, the price increase was more pronounced in the non-residential sector, where equipment and machinery rental costs rose 5.8%. This was further driven by a 7.3% climb in the cost of renting equipment and machinery with operators.
“Non-residential labor costs increased by 1.8%, and energy costs rose by 3%. Basic materials were also 1.8% pricier, as other building material prices climbed 4% and timber and joinery costs increased 2.5%. At the component level, labor costs increased 0.1% month on month in both sectors, while rental costs for residential equipment and machinery also rose 0.1%,” GASTAT remarked.
“The Kingdom’s annual consumer inflation stood at 1.8% in July, according to a separate release from GASTAT, compared with the 2.3% annual increase in the construction cost measure,” it concluded.