RIYADH: Saudi Arabia’s Construction Cost Index increased 2.7 percent year on year in June, driven by higher equipment rental and labor costs in both the residential and non-residential sectors, official data showed.
According to the latest report by the General Authority for Statistics, construction costs in the residential sector rose 2.6 percent annually in June, while the non-residential sector recorded an annual increase of 3.1 percent.
According to an April IMARC Group forecase, the Kingdom’s construction market is projected to reach $140.4 billion by 2034, growing at a compound annual growth rate of 3.6 percent during 2026-2034.
In its latest report, GASTAT stated: “CCI for the residential sector recorded an annual increase of 2.6 percent. This was driven by a 4.5 percent increase in the costs of renting equipment and machinery, driven by a 6.2 percent increase in the costs of renting equipment and machinery with operators.”
In the residential sector, labor costs rose 2.5 percent, energy prices increased 3 percent, and the cost of basic materials rose 1.8 percent.
