RIYADH — The number of building permits issued in Saudi Arabia rose to 5,828 in July 2026, compared to June 2026, when 5,045 permits were issued, marking a 16 percent monthly increase. This number also marked a 4 percent year-on-year increase when compared to 5,582 in July 2025, according to the report of the General Authority for Statistics (GASTAT). The number of building permits issued in Saudi Arabia rose to 5,045 in June 2026, compared to 4,192 in June 2025, marking a 20.3 percent year-on-year increase. On a monthly basis, the number of permits decreased slightly by 0.2 percent compared to May 2026, when 5,056 permits were issued. Statistical data recently revealed a 2.3 percent increase in the construction cost index during July 2026 compared to July 2025. This increase was primarily attributed to a 2.2 percent rise in construction costs for the residential sector and a 2.6 percent increase in the non-residential sector. According to the data, the residential sector index recorded a 2.2 percent year-on-year increase, driven by a 4.2 percent rise in equipment and machinery rental costs. This increase was attributed to a 5.7 percent rise in equipment and machinery rental costs with an operator, along with a 1.4 percent increase in labor costs and a 3 percent rise in energy prices. Basic material costs also increased by 1.8 percent, driven by a 3.9 percent rise in timber and carpentry prices and a 2.8 percent increase in the prices of other building materials. The construction cost index in Saudi Arabia rose by 2.7 percent in June 2026 compared to the same period in 2025. The index reached 104.0 points in June, based on the 2023 base year, compared to 101.2 points in June 2025. The GASTAT stated that the increase was mainly attributable to a 2.6 percent rise in construction costs for the residential sector and a 3.1 percent increase in construction costs for the non-residential sector. The construction cost index rose in June 2026 on an annual basis, driven by a 5 percent increase in equipment and machinery rental costs, a 3 percent rise in energy costs, and a 2.6 percent increase in labor costs.Construction cost data by sector for June 2026 showed continued growth in both sectors, with the residential sector—which carries the largest weight at 77.5percent—recording growth of 2.6 percent compared to June 2025. This increase was driven by a 4.5 percent rise in equipment and machinery rental costs, a 3 percent increase in energy costs, a 2.5 percent increase in labor costs, and an approximately 1.8 percent rise in basic material costs.
