H2 2023

Kingdom of Saudi Arabia Saudi Arabia

Construction Costs on the Global Stage,
Benchmarking Like Never Before.
The enthusiasm and dedication driving the Kingdom's
construction boom, where the foundations of tomorrow are
meticulously laid, are shaping Vision 2030: a future marked
by innovation and growth.

Saudi Arabia entices foreign
investors with attractive
incentives, including tax
exemptions and premium
residencies for executives. These
initiatives serve as a magnet for
industry leaders and pioneering
companies, enhancing the allure
of foreign investments.
Firm budgets and cost control
strategies are crucial, especially
as masterplan developments
transition from vision to reality.
Prioritizing budget integrity and
leveraging unbiased KSA market
data is paramount to ensure
decisions align with reality,
paving the way for success.
External factors, like economic
shifts or global events, beyond
the team's control, significantly
impact construction costs.
To help overcome these risks,
modern development budgets
demand careful contingency
allocation for effective
uncertainty navigation.
PIF, driving Vision 2030, spearheads
Giga developments, propelling the
construction industry and foreign
investments. Unprecedentedly,
Saudi Arabia's construction sector
now thrives with diverse projects—
from infrastructure to sports &
entertainment, theme parks, and
ultra-luxury hospitality.
H2 2023 - Kingdom of Saudi Arabia Construction Costs Benchmarking

Carpark
Residential
The building costs for respective Building Construction Low SAR/m2 High SAR/m2
The building costs for respective Building Construction Low SAR/m2 High SAR/m2 asset types including building Basement / Underground 2,900 4,000
asset types including building Villa Standard 3,400 4,200 construction works excluding On Grade 500 1,200
construction works, and fixed fit- Villa Mid-market 4,000 5,400 variable cost items such as
About Compass
Above Ground 2,200 3,200
out works. Villa Upper Mid-market 5,200 8,000 shoring (specific to the site),
Apartment Standard 4,500 5,500 parking management system,
Apartment Mid-market 5,500 6,500 and system, and electrical
charging stations.
Leveraging our extensive delivery
Apartment Premium 6,500 9,500
experience, knowledge, and advanced
Hospitality Food & Beverage project development tools, we pave the
The building costs for respective asset Building Construction Low SAR/m2 High SAR/m2
The fit-out works costs for Fit-out Construction Low SAR/m2 High SAR/m2 most proficient path to project success.
types including building construction respective asset types including
works, fixed fit-out works, kitchen and
3 Star Hotel 7,000 10,500
architectural, FF&E & MEP fit-
Restaurant Mid-market
Restaurant High-end
7,000
13,000
13,000
19,000
Overcoming constraints and obstacles,
4 Star Hotel 9,500 12,500
laundry equipment.
5 Star Hotel 12,500 17,000
out works, and shopfront. Rate
excludes variable cost items
we deliver projects effectively and
like lighting, loose FF&E, kitchen efficiently, eliminating risk for our clients.
equipment, AV/IT/security, and
Retail artwork. Specialising in start-to-finish project development solutions, our
The building costs for respective collective attention to detail, and our passion for getting everything
Building Construction Low SAR/m2 High SAR/m2
asset types including building shell right, helps define and solidify your goals, whilst establishing and
District Mall 4,500 6,000
Offices managing realistic schedules and budgets.
& core construction works, front- Regional Mall 5,500 7,000
of-house and back-of-house fit-out The fit-out works costs for Fit-out Construction Low SAR/m2 High SAR/m2
We lead construction projects from concept right through to
excluding the retail tenant area. respective asset types including Office Standard 3,000 5,000
completion with turn-key services including:
architectural & MEP fit-out Office Mid-market 5,000 7,000
works, specialist AV/IT/Security Office High-end 7,000 10,000 Development Management
Family Entertainment Center installations, and fixed FF&E.
Program Management
(Complex/Facility)
Project Management
The building costs for respective Building Construction Low SAR/m2 High SAR/m2
asset types including building shell &
Procurement Management
FEC upper mid-market 9,000 13,000
core construction works, circulation, Commercial Management
and BOH fit-out excluding the retail Benchmarking Notes Construction Management
and attractions area. The m2 area is based on GIA measurement as defined by the RICS code of measuring practise 6th edition.
SAR/m2 rates are current as of H2 2023.
Rates include contractor’s overhead & profit, and general requirements.
Schools
Rates assume a traditional build only procurement route, considering Tier 1 main contractor.
The building costs for respective Building Construction Low SAR/m2 High SAR/m2 The rates in this document are indicative and subject to each project’s requirements and specifications.
asset types including building To find out more, contact:
Primary & Secondary Rates exclude: Contingency, inflation beyond H2 2023, professional fees, statutory fees, legal fees, sales &
construction works, and fixed fit- Education 5,800 7,500 insights@compass-pc.com
marketing fees, pre-opening costs, land costs, finance costs, client direct costs, loose FF&E, OS&E and VAT.
out works. compass-pc.com