Construction Cost Index rises 2% in March 2026

Saudi Arabia's Construction Cost Index rose by 2% in March 2026 compared to the same period in 2025.

This is considered the highest growth in record since the General Authority for Statistics (GASTAT) began collecting the index data in January 2024.

The index hit 103.2 points (base year 2023), up from 101.2 points in March 2025, according to data from the GASTAT.

The increase was mainly driven by a rise in construction costs for the residential sector (+1.9%) and the non-residential sector (+2.2%).

The index measures changes in construction costs over time based on a basket of building materials and construction services, and is widely used by planners and researchers.

The year-on-year (YoY) increase in the index was mainly driven by higher equipment and machinery rental costs (+4.8%), energy costs (+3%), and labor costs (+2.7%).

Meanwhile, core materials—which carry the largest weight in the index at 48.5%—recorded a increase of 0.3%.

Data by sector showed a YoY increase in both residential and non-residential construction costs in March 2026. Residential sector (77.5% weight) went up 1.9%, mainly driven by equipment and machinery rental costs (+4.5%), along with higher energy costs (+3%) and labor costs (+2.7%).

Non-residential sector moved up 2.2% YoY, mainly driven by the jump in equipment & machinery rental costs (+5.9%), as well as the increase in energy costs (+3%) and labor costs (+2.9%).

Core materials remained relatively stable across both sectors, with a slight increase of 0.3%.