The cost of construction in Saudi Arabia registered a year-on-year increase in July 2025, according to the General Authority for Statistics (GASTAT). The latest data shows sustained pressure on building costs across both residential and non-residential segments.
Construction Price Index Records Annual Growth
Saudi Arabia’s Construction Cost Index (CCI) recorded a 0.7 per cent rise compared to July 2024. This increase reflects higher costs for key inputs across the sector. The residential construction segment saw a 0.7 per cent rise, while non-residential costs grew 0.6 per cent year on year.
On a monthly basis, residential construction costs edged up by 0.4 per cent versus June 2025. Non-residential construction recorded a 0.5 per cent increase month on month. These movements underline steady cost pressures for developers and contractors as demand remains robust.
Index Tracks Prices Across 51 Goods and Services
GASTAT confirmed that the CCI measures price changes for 51 construction-related goods and services. Data is collected monthly from various regions across the Kingdom. The index uses 2023 as its base year, providing a clear benchmark for tracking market fluctuations.
The report signals that construction material costs and associated inputs continue to influence project budgets. With both residential and non-residential segments showing upward trends, developers may face additional financial considerations in upcoming projects.
Key Numbers for July 2025
- CCI Year on Year: +0.7 per cent
- Residential Construction: +0.7 per cent (YoY) | +0.4 per cent (MoM)
- Non-Residential Construction: +0.6 per cent (YoY) | +0.5 per cent (MoM)
The findings suggest that while overall cost growth remains moderate, incremental increases across multiple months could have cumulative effects on project timelines and budgets.
GASTAT stated that the Construction Cost Index reflects national pricing trends and serves as a critical tool for developers, investors, and policymakers in planning and cost management.
As the Kingdom continues its infrastructure and housing initiatives under Vision 2030, monitoring input price changes will be essential to maintaining financial efficiency across the construction sector.
