Saudi construction costs rise by 2% in March

RIYADH — The Saudi construction cost index recorded an increase of two percent during the last month of March compared to the same month in 2025. This was driven mainly by a 1.9 percent increase in residential costs and a 2.2 percent increase in non-residential costs. The annual construction cost index for the residential sector rose by 1.9 percent last month, driven by a 4.5 percent increase in equipment and machinery rental costs, which in turn was influenced by a 6.1 percent rise in operating costs. Labor costs also increased by 2.7 percent and energy prices by 3 percent along with a slight 0.3 percent increase in the cost of basic materials, fueled by a 0.4 percent rise in cement and concrete prices and a 1.3 percent increase in timber and carpentry prices. In contrast, the non-residential sector saw a 2.2 percent annual increase, resulting from a 5.9 percent rise in equipment and machinery rental costs, driven by a 7.8 percent increase in operating costs. On a monthly basis, the construction cost index rose by 0.6 percent during March compared to February. This was mainly attributed to an increase in costs in the residential sector by 0.6 percent and the non-residential sector by 0.7 percent.