Saudi construction cost index rises 2.2% in September

Saudi Arabia’s construction cost index rose 2.2% YoY to 104 points in September 

Saudi Arabia’s construction cost index (CCI) rose 2.2% year on year (YoY) to 104 points in September, compared with 101.8 points a year earlier, the General Authority for Statistics (GASTAT) said.

The index, based on 2023 as the base year, measures changes in the costs of construction materials and services over time.

Residential construction costs rose 2.1% YoY in September, while non-residential costs increased 2.6%, GASTAT said.

The overall increase was driven mainly by a 4.4% rise in equipment and machinery rental costs, a 3% increase in energy costs, and a 1.6% rise in labor costs.

Basic materials, which account for 48.5% of the index, recorded a 1.7% increase.

Residential construction costs, which account for 77.5% of the index, rose 2.1% YoY, driven by a 4.1% increase in equipment and machinery rental costs, a 3% rise in energy costs, a 1.5% increase in labor costs, and a 1.7% rise in basic materials costs.

Non-residential construction costs increased 2.6% YoY, reflecting a 5.8% rise in equipment and machinery rental costs, alongside increases of 3.0% in energy costs, 2.0% in labor costs and 1.8% in basic materials costs.