Construction Cost Index rises 0.7% in July: GASTAT

Saudi Arabia’s Construction Cost Index (CCI) rose by 0.7% year-on-year (YoY) in July 2025, according to the General Authority for Statistics (GASTAT).

CCI advanced to 101.69 points in July based on the base year 2023, compared to 101.04 points in July 2024.

The index rise was driven by a 0.7% YoY increase in the construction costs of the residential sector. Similarly, construction costs in the non-residential sector rose 0.6% YoY.

The CCI is a relative number that measures changes in construction costs over two periods for a basket of building materials and construction services. It is considered an important indicator relied upon by planners and researchers in the fields of development and production in general.

In the residential sector, the equipment and machinery rental costs added 1.8% YoY, as the costs of rentals without an operator were up 2.5%.

Given its substantial weight of 77.5% within the sector, this category played a key role in sustaining the annual inflation trend in July 2025.

Energy prices appreciated by 9.9% YoY as diesel costs jumped 27.3% YoY. Labor costs increased by 1.5% YoY.

In the non-residential sector, equipment and machinery rental costs rose by 1.9% YoY, as the costs of rentals without an operator were up 2.3%. Labor costs also increased by 1.2% in July 2025.

On the other hand, basic material costs declined by 0.7% as metal products and other building material prices went down by 1.9% each.