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The General Authority for Statistics published its Construction Cost Index for July 2026 on Sunday revealing a 2.3 percent rise from the same month a year earlier. This annual gain reflected higher costs in both residential and non-residential building activities across the kingdom. Non-residential construction saw costs climb 2.6 percent while residential costs rose 2.2 percent during the period under review. The authority compiled the indicator from nationwide price tracking that covers key inputs for the sector.
Equipment and machinery rental led the increases in the residential sector with a 4.2 percent annual advance that included a 5.7 percent jump for units with operators the authority’s breakdown indicated. Energy costs contributed with a 3 percent rise. Basic materials gained 1.8 percent supported by 3.9 percent higher prices for timber and joinery plus 2.8 percent for other building materials and labor costs increased 1.4 percent. These shifts formed the main drivers behind the residential component of the index.
Similar pressures appeared in the non-residential sector where equipment and machinery rental costs rose 5.8 percent including 7.3 percent for rentals with operators according to GASTAT. Energy costs increased 3 percent labor costs 1.8 percent and basic materials 1.8 percent with other building materials up 4 percent and timber and joinery 2.5 percent. The authority noted that these categories together produced the 2.6 percent sector-wide advance for the year.
The index showed no change from June 2026 on a monthly basis GASTAT stated in the same release. The overall Construction Cost Index stood at 104 points in July compared to 101.7 points in July 2025. This followed a 2.7 percent annual increase registered for June when residential costs had risen 2.6 percent and non-residential costs 3.1 percent.
Consumer inflation measured 1.8 percent in July according to separate GASTAT statistics. The construction cost gauge has exceeded the general inflation rate in recent reporting periods. Such cost movements take place against the backdrop of extensive development programs the kingdom is pursuing.
The Construction Cost Index serves as a key indicator for tracking changes in prices of materials labor equipment rentals and energy used in building projects. It covers a selection of representative items and is updated each month by the statistics authority. Planners and researchers rely on the index to monitor sector dynamics and inform project budgeting.
