Construction costs in Saudi Arabia rose 2.2% year-on-year in September 2026, with the overall Construction Cost Index reaching 104.05 points, up from 101.77 points in September 2025. Costs held steady compared with August 2026.
Residential construction costs climbed 2.1%, while non-residential construction costs recorded a sharper rise of 2.6%, reflecting continued pressure across the sector.
What drove the increases
In the residential sector, basic-material costs rose 1.7%, with timber and joinery prices up 3.5%. Equipment and machinery rental costs increased 4.1%, rising to 5.5% when rented with an operator. Labor costs edged up 1.5%, while energy costs rose 3%.
Non-residential projects saw steeper equipment-related increases. Machinery rental costs climbed 5.8%, reaching 7.2% with an operator. Labor costs rose 2% and energy costs increased 3%.
For residents, builders, and investors, the figures signal where cost pressure is concentrated — particularly in machinery rental and energy. The stable month-on-month reading suggests prices have leveled off recently, offering some predictability for those planning residential or commercial projects across the Kingdom.
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