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The cost of construction in Saudi Arabia has increased by 1.9 percent in the third quarter of 2018 as compared to the previous period due to the rise in raw material costs, a recent report by Colliers International said.
“The construction industry in the Kingdom witnessed a mixed bag in terms of material price movement in the past 12 months ending Sep. 30, with the largest price shift encountered in steel rebar,” the report said.
Apart from materials, the report pointed out workload and labor as two key drivers to determine the construction cost inflation over the next 12 months.
“Various taxes on expat visas and continued push towards Saudization have increased the cost of labor. Going forward, every 10 percent increase in the cost of labor will swing the construction cost by more than 3 percent,” the report further said.
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