Saudi Arabia’s General Authority for Statistics has announced that the construction cost index rose 2.3% year-on-year in August, driven by higher costs in both the residential and non-residential sectors.

Construction costs in the residential sector increased 2.1% from a year earlier, while costs in the non-residential sector rose 2.6%, said the data from General Authority for Statistics.

In the residential sector, basic material costs rose 1.8%, led by a 2.0% increase in metal product prices. Equipment and machinery rental costs increased 4.1%, including a 5.6% rise in the cost of renting equipment and machinery with operators. Labour costs rose 5.1%, while energy prices increased 3.0%.

In the non-residential sector, equipment and machinery rental costs increased 5.8%, driven by a 7.2% rise in the cost of renting equipment and machinery with operators. Labour costs rose 2.0% and energy prices increased 3%.

Basic material costs in the non-residential sector rose 1.8%, reflecting a 4.3% increase in prices of other construction materials and a 2.1% rise in timber and carpentry prices.