Construction Cost Index rises 1.4% in February 2026

Saudi Arabia's Construction Cost Index rose by 1.4% in February 2026 compared to the same period in 2025.

The index hit 102.5 points (base year 2023), up from 101.1 points in February 2025, according to data from the General Authority for Statistics.

The increase was mainly driven by a rise in construction costs for the residential sector (+1.4%) and the non-residential sector (+1.5%).

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 labor costs, which rose by 2.8%, along with increases in equipment and machinery rental costs (+1.9%) and energy costs (+3%).

Meanwhile, core materials—which carry the largest weight in the index at 48.5%—recorded a marginal increase of just 0.2%.

Data by sector showed a YoY increase in both residential and non-residential construction costs in February 2026. Residential sector (77.5% weight) went up 1.4%, mainly driven by labor costs (+2.7%), along with higher equipment and energy costs.

Non-residential sector moved up 1.5%, with labor costs recording the fastest growth (+3%), in addition to higher equipment and energy costs.

Core materials remained relatively stable across both sectors, which helped limit the overall increase in construction costs.