Construction costs in Saudi Arabia rose 2.2% year-on-year in September 2026, with the index reaching 104.05 points compared with 101.77 points in September 2025. The measure, which uses 2023 as its base year and is published monthly, held steady from August to September 2026.
Residential construction costs increased 2.1% over the year, while non-residential costs rose at a faster pace of 2.6%. The gap points to continued cost pressure across commercial, industrial and public building projects.
The biggest driver was equipment and machinery rental, which climbed 4.4% overall. Energy costs rose 3.0%, while labor costs increased 1.6% — a more modest rise that helped keep the headline figure in check.
Why it matters
Construction cost trends affect everyone from developers and contractors to households planning to build or renovate. Rising input prices can feed into home prices, rents and the budgets of major projects shaping the Kingdom's cities. With the index flat month-on-month, the data suggests costs have stabilized in the short term even as they remain higher than a year ago.
For residents and expats in Riyadh and Jeddah, the figures offer a useful gauge of where housing and building expenses may be heading, and provide context for decisions on property and construction spending in the months ahead.
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