Riyadh, Saudi Arabia - Building in Saudi Arabia cost 2.2% more in September 2026 than a year earlier, with prices up in both residential and non-residential construction, the General Authority for Statistics (GASTAT) said.
Its Construction Cost Index (CCI) put the annual rise for non-residential work at 2.6%, ahead of a 2.1% increase for residential work, with both measured against September 2025.
On the residential side, basic materials were 1.7% dearer, and timber and joinery prices within that group went up 3.5%.
Hiring equipment and machinery for residential work cost 4.1% more. The biggest jump in that category came from equipment and machinery rented with an operator, at 5.5%.
Residential labour costs grew 1.5% and energy costs 3%.
Non-residential construction saw its sharpest increase in equipment and machinery rental, which rose 5.8%, the most of any main cost component. Rental with an operator led the way, up 7.2%.
Labour for non-residential projects cost 2% more, and energy went up 3%.
Non-residential basic materials climbed 1.8%. Prices of other building materials rose 4.3% and timber and joinery 2.1%.
Month on month, the overall index was flat between August and September 2026, as costs held steady in residential and non-residential construction alike.
The September reading is slightly below the 2.3% annual rise GASTAT recorded for August, which matched July. The authority's figures show annual growth peaking at 2.7% in June 2026, up from 0.7% in September 2025.
Residential construction carries 77.5% of the index weight and non-residential 22.5%, according to GASTAT.
The index follows prices for 51 construction inputs. GASTAT gathers them each month in 13 regions, sending field teams to contractors, engineering offices and shops selling building materials.
Its base year is 2023, and a new reading comes out every month.
