Riyadh Ranked Most Expensive City for Construction in the Middle East
The rise in construction costs in the city is attributed to the large number of giga-projects taking place in the Kingdom.
Turner & Townsend’s International Construction Market Survey (ICMS) 2024 highlights Riyadh as the most expensive city in the Middle East for construction, with costs reaching USD 2,593 per m2. The survey attributes this to escalating demand driven by Saudi Arabia's ambitious giga-projects and state-backed developments, including NEOM and Vision 2030.
Despite a slight dip from 7% in 2023, Riyadh anticipates a 5% inflation rate in construction costs throughout 2024. The city's expansion, especially in sports, leisure and hospitality sectors ahead of EXPO 2030 and the 2034 FIFA World Cup, continues to fuel demand.
Skilled labour shortages remain a challenge, compounding cost pressures. Neighbouring Doha follows as the region's second most expensive market at USD 2,096 per m2, while Dubai stands at USD 1,874 per m2, benefiting from robust residential and hospitality sectors amidst lower labour costs.
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