According to the data, the construction cost index increased to 102.5 points during February, based on the 2023 base year, compared to 101.1 points during February 2025.
The authority attributed the rise in the index mainly to a 1.4% increase in construction costs for the residential sector and a 1.5% increase in construction costs for the non-residential sector.
The increase in the construction cost index during February 2026 on an annual basis was mainly driven by an increase in labor costs, which rose by 2.8%, in addition to an increase in equipment and machinery rental costs by 1.9%, and energy by 3.0%.
Basic materials
Basic materials – which have the largest weight in the index at 48.5% – recorded a limited increase of only 0.2%.
Construction cost data by sector showed an annual increase in both the residential and non-residential sectors during February 2026, with the residential sector – which constitutes the largest share with a weight of 77.5% – recording growth of 1.4%, driven mainly by a rise in labor costs of 2.7%, along with an increase in equipment and energy costs.
The construction cost index in the non-residential sector rose by 1.5%, with labor costs recording the highest growth rate at 3.0%, in addition to higher equipment and energy costs.
Important indicator
Basic materials remained at relatively stable levels in both sectors, limiting the overall increase in costs.
The Authority defined the Construction Cost Index as a relative figure that measures the change in construction costs over two time periods for a basket of building materials and construction services, and is considered an important indicator relied upon by planners and researchers in the fields of development and production in general.
