{"id":101503,"date":"2026-02-25T11:58:42","date_gmt":"2026-02-25T08:58:42","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=101503"},"modified":"2026-02-25T12:07:57","modified_gmt":"2026-02-25T09:07:57","slug":"%d8%a7%d8%b1%d8%aa%d9%81%d8%a7%d8%b9-%d8%aa%d9%83%d8%a7%d9%84%d9%8a%d9%81-%d8%a7%d9%84%d8%a8%d9%86%d8%a7%d8%a1-%d9%81%d9%8a-%d8%a7%d9%84%d8%b3%d8%b9%d9%88%d8%af%d9%8a%d8%a9-%d8%ae%d9%84%d8%a7%d9%84","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/101503\/","title":{"rendered":"Saudi Arabia's construction costs rose in January What are the reasons?"},"content":{"rendered":"

Connect Construction costs <\/a><\/strong>In Saudi Arabia, inflation is on an upward trajectory as 2026 begins, driven by rising operating, energy, and labor costs, as well as modest increases in the prices of some basic commodities.<\/p>\n\n\n\n

Data released by General Authority for Statistics <\/a><\/strong>The construction cost index in the Kingdom rose by 1.4% in January 2026 compared to the same month in 2025. According to the data, the index rose to 102.4 points in January 2026, compared to 101 points in January of last year, based on the base year of 2023, reflecting a significant increase in the costs of implementing construction projects across the Kingdom.<\/p>\n\n\n\n

The authority explained that this increase is due to a rise in Construction costs <\/a><\/strong>In both the residential sector, at 1.4%, and the nonresidential sector, at 1.5%, which indicates that price pressures affected all types of projects without exception.<\/p>\n\n\n\n

A Steady Upward Trend Throughout the Year<\/strong>
Throughout 2025, the Construction Cost Index continued to trend upward, stabilizing at 101 points in January, then saw gradual increases over the following months, ranging between 101.1 and 101.8 points through the end of December. As of January 2026, the index jumped to 102.4 points, the highest annual level during the period under review.<\/p>\n\n\n\n

Employment and Energy Lead the Rally<\/strong>
Labor costs were the primary driver of the increase, rising by 2.6% year-over-year, reflecting ongoing pressures in the labor market linked to the construction sector. Energy costs also recorded a sharp increase of 3%, while equipment and machinery rental costs rose by 2%.
As for basic materials, despite accounting for the largest share of the index\u2019s weight, they saw a relatively modest increase of only 0.3%, indicating that the current rise is driven more by operating factors than by raw material prices.<\/p>\n\n\n\n

Residential Sector: Growth Driven by Wages and Equipment<\/strong>
In the residential sector, the index rose as a result of a 2.5% increase in labor costs, along with a 1.9% rise in equipment and machinery rental rates. Energy prices also saw an increase similar to that of other sectors, rising by 3%, while basic materials recorded a slight increase of 0.3%. As a result of these factors, total residential construction costs recorded annual growth of 1.4%.<\/p>\n\n\n\n

The nonresidential sector... a relatively higher pace<\/strong>
As for the non-residential sector, it recorded a slightly higher rate of increase, driven by a 2.6% rise in labor costs, a 2.3% increase in equipment and machinery rental prices, and a 3% rise in energy costs. Raw materials also rose by 0.3%, contributing to a 1.5% year-over-year increase in the sector\u2019s overall index.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>Construction costs in Saudi Arabia continue their upward trend at the start of 2026, driven by rising operating, energy, and labor expenses, as well as modest increases in the prices of some basic materials. Data released by the General Authority for Statistics showed that the construction cost index in the Kingdom rose by 1.4% in January 2026 compared to the same month in \u2026 Read 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