Saudi construction cost index rises 2.4% in April

RIYADH — The construction cost index in Saudi Arabia rose by 2.4 percent in April 2026 compared to the same month of the previous year. This increase is primarily attributed to a 2.4 percent rise in construction costs for the residential sector and a 2.7 percent increase in costs for the non-residential sector, according to the report of the General Authority for Statistics (GASTAT). The residential sector index recorded a year-on-year increase of 2.4 percent, largely driven by a 4.7 percent rise in equipment and machinery rental costs. This increase reflects a 6.3 percent rise in rental costs for equipment and machinery with an operator, alongside a 2.8 percent increase in labor costs and a 3 percent rise in energy prices compared to April 2025.Costs for basic materials also rose by 1.2 percent, due to a 3.3 percent increase in timber and carpentry prices and a 2.1 percent rise in the prices of plastic and glass products. The non-residential sector index recorded a year-on-year increase of 2.7 percent in April 2026. This growth was driven by a 6.7 percent increase in equipment and machinery rental costs, including an 8.5 percent rise in rentals with an operator, as well as a 3 percent increase in labor costs and a 3 percent rise in energy expenses.Basic material costs in the non-residential sector also increased by one percent, led by a 2.3 percent rise in timber and carpentry prices and a 2.2 percent increase in the prices of plastic and glass products. On a monthly basis, the construction cost index for April 2026 rose by 0.5 percent compared to March 2026, reflecting similar increases in both residential and non-residential construction costs.