For inquiries
Riyadh, Saudi Arabia
JLL, a global real estate specialist, has confirmed that the construction sector in Saudi Arabia is entering a phase of deliberate growth during 2026 and 2027.
In its new report on the Kingdom’s construction market during the first half of 2026, the company explained that after years of record activity, the moderate and stable growth expected during the next phase reflects the maturity of the market and the shift towards achieving sustainable growth in the long term. This growth is the result of recent policy changes, including the amendment of the “white land fees” system in Riyadh, which contributes to accelerating the pace of construction work, and stimulate the development of previously untapped plots of land, which gives new momentum to the market.
Maroun Depp, Head of Project and Development Services for the Middle East and Africa at JLL, added: “We are witnessing a clear development in the Saudi construction sector, as it moves from accelerated growth to maturity and sustainability, and for developers and investors, this represents a structural shift in the method of implementation of major projects. With the expansion of partnerships between the public and private sectors, success today depends on smarter purchasing strategies to deal with the challenges of supply chains, and drive long-term economic growth in the Kingdom.”
JLL revised its forecast for the bid price inflation rate for 2026 to 5.0%
JLL has revised its forecast for the bid price inflation rate for 2026 to about 5.0%, with a minimum of 4.0% and a higher limit of 6.0%, compared to its previous forecast of 4.0%, based on current market conditions and input cost indicators recorded in the first half of the year.
The high costs have been concentrated in sectors that rely heavily on minerals and imports, where the prices of building materials and major fuels increased by 44.5%, 23.9% and 7.9%, respectively, during the period until August 2026, and despite these cost pressures, the tender environment is very competitive, and contractors are currently bearing part of the burden of these increases by reducing profit margins, preventing the inflation achieved from rising to higher levels.
The growing opportunities for public-private partnerships across healthcare, education and urban development are attracting a strong range of local and international companies, reflecting the long-term resilience of these sectors.
JLL expects bid inflation to stabilize at around 5.0% in 2027, within the same range of 4.0% to 6.0%, as input cost pressures persist and market competition continues to intensify.
For more Information contact: www.dxrprop.ae
Call/WhatsApp: +971501090635
Email: alnashra2013@gmail.com
– To write a special article about the name of your organization or company, you can write to the following email: