Construction costs inch up 1% y-o-y in October

The Kingdom’s Construction Cost Index (CCI) rose 1% y-o-y in October, maintaining the same pace as the previous month, according to recent data (pdf) from the General Authority for Statistics. The uptick was driven by a 1% increase in residential construction costs and a 0.9% rise in non-residential costs.

The drivers: Residential construction costs rose on the back of a 1.5% increase in labor expenses, a 1.2% rise in equipment and machinery rental prices, and a 1.4% increase in rentals of equipment and machinery with operators. Meanwhile, non-residential construction costs jumped due to a 1.3% rise in equipment and machinery rental prices, a 1.6% increase in rentals of equipment and machinery with operators, and 1% growth in labor costs.

ALSO- Energy prices jumped 9.9% in October. For residential projects, basic materials prices edged up 0.1% y-o-y, supported by a 1.7% increase in raw materials prices and a 1.3% rise in cement and concrete. In the non-residential segment, prices for basic materials rose 0.2%, thanks to a 2.0% increase in wood and carpentry prices and a 1.5% rise in raw materials prices.

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