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The index of construction costs in Saudi Arabia during September 2026 increased by 2.2% compared to the same month last year 2025.
In its report issued on Thursday, the General Authority for Statistics confirmed that this increase is mainly due to the increase in construction costs for the residential sector by 2.1%, and the increase in construction costs for the non-residential sector by 2.6%.
The index of the residential sector witnessed an increase in last September on an annual basis of 2.1%, and this increase is due to the increase in the costs of basic materials by 1.7%, as a result of the increase in the prices of wood and carpentry by 3.5%, as well as the increase in the costs of renting equipment and machinery by 4.1%, driven by the increase in the costs of renting equipment and machinery with an operator by 5.5%, and the increase in labor costs by 1.5%, and energy prices by 3%.
The index of the non-residential sector increased year-on-year by 2.6%
The index of the non-residential sector increased year-on-year by 2.6%, driven by an increase in the cost of rental equipment and machinery by 5.8%, driven by an increase in the cost of renting equipment and machinery with an operator by 7.2%, an increase in labor costs by 2%, and an increase in energy costs by 3%.
It is noteworthy that the costs of basic materials witnessed an increase of 1.8%, and this increase was the result of the increase in the prices of other building materials by 4.3%, and the prices of wood and carpentry by 2.1%, and on the basis of the monthly change in construction costs, the index of construction costs for September 2026, compared to August, mainly due to the stability of the costs of the residential sector, and the costs of the non-residential sector.
The construction cost index reflects price movements in construction input costs, which consist of 51 items, whose prices are collected monthly from thirteen areas through field visits to contractors’ offices, engineering offices, and construction materials facilities, and set 2023 as the base year.
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