Construction Cost Index in Saudi Arabia Increases 1.1% in June

The General Authority for Statistics revealed that the construction cost index in Saudi Arabia increased by 1.1% compared to June 2024, affected by a 1.2% increase in construction costs for the residential sector and a 1.0% increase in the non-residential sector. This increase resulted from a 2.5% increase in equipment and machinery rental prices and a 9.9% increase in energy prices, impacted by a 27.3% increase in diesel fuel prices.

The Authority announced the release of the Construction Cost Index Bulletin in Saudi Arabia as part of its ongoing efforts to develop statistical products for vital sectors, provide a reliable and effective reference and accurate estimates based on a comprehensive analysis of raw material prices, labor wages, equipment and machinery rental costs, and energy costs. It also unifies estimates across various sectors to support the decisions of contractors, real estate developers, and relevant parties, and contributes to developing a clear roadmap for residential and non-residential construction projects in the construction sector. In the same context, the results of the Construction Cost Index survey showed stable prices for June 2025 compared to May 2025. Basic material costs also decreased by 0.1% due to a 0.4% decrease in metal product prices.

The results of the bulletin for June 2025 indicated that labor wages rose by 2.4%, while basic material prices decreased by 0.7%. On a monthly basis, the index remained stable compared to May 2025.

It is worth noting that the Construction Cost Index will be issued monthly. The index can be viewed on the official website of the General Authority for Statistics, which provides analytical reports and updated charts that enable decision-makers to track market changes and review bulletins, figures, and statistical indicators in this sector.