Saudi construction costs rise 2.3% in July as equipment rentals climb

RIYADH: Saudi Arabia’s construction costs rose 2.3 percent year on year in July, driven by higher equipment and machinery rental charges across residential and non-residential projects, official data showed.

The Construction Cost Index, published by the General Authority for Statistics, showed residential costs increasing 2.2 percent annually, while non-residential costs rose 2.6 percent. The overall annual growth eased from 2.7 percent in June but remained above the 0.7 percent recorded in July 2025.

The latest increase in the Kingdom’s construction costs comes as the nation continues to advance major housing, infrastructure and development projects under Vision 2030.

“CCI remained stable in July 2026 compared to June 2026,” the report said, attributing the monthly result to unchanged overall costs in both the residential and non-residential sectors.

Rental costs lead increases