The Kingdom’s Construction Cost Index (CCI) rose 0.7% y-o-y in September, maintaining the same pace as in the last two months, according to recent data (pdf) from the General Authority for Statistics. The increase was driven by a 0.8% rise in residential construction costs and a 0.6% uptick in non-residential costs.

The drivers: Residential construction costs rose mainly due to a 1.5% increase in labor expenses and a 1.2% rise in equipment and machinery prices, particularly on the back of a 1.4% increase in rentals with operators. Meanwhile, non-residential activity gained on a 1.0% increase in labor costs and a 1.3% rise in equipment and machinery rental prices, also led by rentals with operators, which edged up 1.6%.

ALSO- Energy prices jumped 9.9% in September, adding pressure across construction sectors. For residential projects, basic materials prices slipped 0.3% y-o-y, weighed down by a 1.7% decline in metal product prices and a 1.2% drop in other construction materials. In the non-residential segment, prices for basic materials slipped 0.4%, likewise, due to the drop in metal products and other materials prices.

On a monthly basis: The CCI remained stable in September compared to August, as both residential and non-residential construction costs showed no change m-o-m.

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