Saudi Construction Cost Index Rises 1% in November 2025

The Saudi construction cost index increased by 1% in November 2025, maintaining the same growth pace recorded in October, according to data released by the General Authority for Statistics (GASTAT) on Monday.

The increase was mainly driven by higher construction costs in both the residential and non-residential sectors, each recording a 1% annual rise.

Silhouettes of multiple industrial tower cranes at a large construction site against a purple and orange sunset sky. — A busy urban development project continues into the evening as tower cranes overlook a concrete building frame.

Residential Sector Costs

The residential construction cost index rose by 1%, supported by a 1.5% increase in labor costs compared to November 2024, and a 1.3% rise in equipment and machinery rental costs, influenced by a 1.5% increase in equipment rental with operators.

Energy prices climbed by 9.9%, while basic material costs edged up 0.2%, driven by higher prices of cement and concrete (up 1.4%) and raw materials (up 1.1%).

Three construction professionals wearing hard hats and safety vests standing on a site and looking at building plans against a bright sky. — A team of engineers and site managers reviewing architectural blueprints during the early stages of a structural build.

Non-Residential Sector

The non-residential sector also recorded a 1% increase in construction costs year-on-year in November 2025, due to a 1.2% rise in equipment and machinery rental costs, supported by a 1.6% increase in equipment rental with operators.

Additionally, labor costs rose by 1.1%, energy prices increased by 9.9%, and basic material costs grew by 0.3%, driven by higher prices of wood and carpentry materials (up 2.5%) and raw materials (up 1.4%).

Monthly Stability

GASTAT data showed that the construction cost index remained stable on a monthly basis in November 2025 compared to October, reflecting unchanged costs in both residential and non-residential sectors.

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✦ ArchUp Editorial Insight

This week’s discourse situates architecture within Contemporary practice marked by Adaptive Reuse and urban regeneration, spanning quarry-to-neighborhood transformation in Bærum, hospitality-led renewal in Miami, and Foster + Partners’ Modernist-informed retrofit emphasizing structural retention in London. Across these works, material expression is pragmatic—retained frames, industrial remnants, and mixed-use programming—while spatial dynamics prioritize long-term occupation within evolving urban fabric. However, the parallel rise in construction costs, underscored by Saudi Arabia’s steady index increase, raises questions of feasibility and functional resilience: do ambitious forms and sustainability narratives withstand inflationary pressures without diluting social intent? Conversely, while adaptive strategies promise contextual relevance, their success depends on aligning labor, energy, and material realities with equitable outcomes rather than symbolic resilience. Ultimately, the projects’ architectural ambition lies in reconciling cultural legacy with economically grounded urban continuity.