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Riyadh – Mubasher: Prices for key construction materials in Saudi Arabia remained relatively stable during the third quarter of 2019, compared to the year-ago period, according to a report released by Colliers International MENA on Tuesday.
The prices of timber and blockwork declined by 0.7% and 2%, respectively, year-on-year in Q3-19 while the prices of marble tiles and aluminium went down by 3% each.
Meanwhile, the prices of sand and cement rose by 4% each from July to September 2019, compared to the year before. The prices of rabar grew by 1.5% YoY in Q3-19, while concrete’ prices levelled up by 3% YoY in the same period.
Saudi Arabia’s Saudisation programme, Nitaqat, is succeeding at increasing the demand for Saudi workforce, but – amid a lack in skilled and semi-skilled construction workers – the labour cost remains high in the kingdom, Colliers report said.
"The construction industry is anticipating growth and the outlook appears promising from 2020 onwards, mainly driven by the increase of government spending and a growing population. Government backed giga-projects such as Neom and Qiddiya Entertainment City…are expected to boost construction activity in the coming years,” the report added.
As per Colliers International estimates, the construction cost inflation in the GCC country is expected to reach an average of 3.2% during the next 12 months.
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