The Saudi Arabian building materials market witnessed significant price fluctuations during November, with official data revealing a decrease in the prices of all types of concrete, while cement prices showed notable volatility, fluctuating between slight increases and decreases. This data comes from the General Authority for Statistics' bulletin of average prices for goods and services, the official source for monitoring economic changes in local markets.
Details of the decline in concrete prices
The statistical bulletin showed a general decline in ready-mix concrete prices, a positive indicator for the contracting and construction sector. The details are as follows:
- Resistant concrete: The price of "350K resistant" concrete decreased by 0.7% on a monthly basis to reach 224.2 riyals per cubic meter, and the price of "250K resistant" concrete also decreased by the same percentage (0.7%) to record 204.6 riyals per cubic meter.
- Ordinary concrete: The price of “ordinary 350 kg” concrete recorded a decrease of 0.3% to reach 214.4 riyals per cubic meter, and the price of “ordinary 250 kg” concrete reached 196.3 riyals per cubic meter, decreasing by 0.3% compared to the previous month.
Prices of cement and other building materials vary
In contrast, cement and other building materials prices showed mixed performance, with the price of national white cement decreasing slightly by 0.1% to settle at 37.9 riyals, while the price of national black cement increased by 0.5% to record 15.5 riyals per bag (50 kg).
Regarding other materials, the price of locally produced gypsum decreased by 0.3% to SAR 15.6, and the price of crushed local marble tiles declined by 0.2% to SAR 23.5. Black concrete blocks in both sizes (15 cm and 20 cm) also saw a 0.2% decrease, reaching SAR 1,692.2 and SAR 1,741 per thousand blocks, respectively. Conversely, the price of fine white sand increased by 1.1% to SAR 77.3, while mixed sand and gravel saw a slight increase of 0.1%.
Price impacts on the construction sector
This report is particularly important given the major construction boom underway in Saudi Arabia as part of its Vision 2030 goals. The construction sector is a key pillar in diversifying the non-oil economy. Stable or lower prices for essential materials such as concrete, steel, and cement contribute to reducing the costs of major projects, thus enhancing the ability of contracting companies to adhere to project timelines and budgets.
The economic importance of statistics authority data
Data issued by the General Authority for Statistics is a vital tool for investors and real estate developers, aiding them in conducting feasibility studies for future projects. Furthermore, monitoring the building materials price index provides clear indicators of inflation rates in the construction sector, helping individuals planning to build homes choose the optimal time to purchase and contract, reflecting the high level of transparency in the Saudi market.
