{"id":107839,"date":"2026-04-23T00:00:00","date_gmt":"2026-04-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=107839"},"modified":"2026-04-23T03:45:59","modified_gmt":"2026-04-23T03:45:59","slug":"construction-index-climbs-2-in-march","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/04\/23\/construction-index-climbs-2-in-march\/","title":{"rendered":"Construction Index climbs 2% in March"},"content":{"rendered":"

The Kingdom\u2019s Construction<\/strong> Cost Index (CCI) rose 2.0% y-o-y in March 2026<\/strong>, accelerating at its fastest pace since January 2024, according to recent data (pdf)<\/a> from the General Authority for Statistics. The uptick was driven by a 1.9% increase in residential construction costs and a 2.2% rise in non-residential costs.<\/p>\n

An upward swing in man and machine:<\/strong> Residential construction costs rose on the back of a 4.5% rise in equipment and machinery rental prices, a 6.1% increase in rentals of equipment and machinery with operators, and a 2.7% increase in labor expenses. Meanwhile, non-residential construction costs jumped due to a 5.9% rise in equipment and machinery rental prices, a 7.8% increase in rentals of equipment and machinery with operators, and 2.9% growth in labor costs.<\/p>\n

\u2026 and markups on fuel and materials:<\/strong> Energy prices jumped 3% in March 2026. For residential projects, basic materials prices edged up 0.3% y-o-y, supported by a 0.4% increase in cement and concrete and a 1.3% rise in timber and joinery. In the non-residential segment, prices for basic materials rose 0.3%, thanks to a 1.2% increase in timber and joinery prices and a 1.8% rise in plastic and glass products.<\/p>\n

Why it matters:<\/strong> The CCI\u2019s surge reflects a cost-push trap<\/a> tied to the Strait of Hormuz crisis, which has lifted energy prices and disrupted logistics. Higher oil-linked input costs pushed up prices for cement, steel, and aluminum, while blocked Dammam and Jubail ports delayed imports. Unaccounted for in the index is the cost of volatility, which has raised project premiums and made it harder for contractors and clients to forecast costs and price projects with confidence, prompting contract delays.<\/p>\n

On a monthly basis: <\/strong>The index rose by 0.6% in March 2026 compared to February 2026 \u2014 its strongest gain since July 2024 \u2014 with residential construction costs up 0.6% and non-residential costs up 0.7% m-o-m.<\/p>\n","protected":false},"excerpt":{"rendered":"

Labor, machinery, energy, and materials all surged in March as Hormuz\u2019s effect hit the numbers<\/p>\n","protected":false},"author":1,"featured_media":107840,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2576],"tags":[142,3846,10,1433],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-107839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction","tag-construction","tag-construction-cost-index-cci","tag-enterpriseam-ksa","tag-general-authority-for-statistics-gastat","wpautop","entry"],"acf":{"mongo_id":"95c358e9-aad3-47d4-9377-286978149501","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/9\/855.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Construction costs inflation hits two-year high","related_issue":[107834],"teaser":"Labor, machinery, energy, and materials all surged in March as Hormuz\u2019s effect hit the numbers"},"yoast_head":"\nConstruction Index climbs 2% in March - 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