Prices of key construction materials in Q1 in Saudi Arabia soared to the highest prices in 12 years, with steel leading the increase as construction activity began to recover from the slowdown caused by the coronavirus disease pandemic last year.
According to Arab News, the price of steel surged to SR3,514.73 ($937.26) per ton in Q1 of 2021, a 33 percent increase year-on-year and the highest price since 2008, according to the latest data from the General Authority for Statistics (GASTAT).
The cost of other materials also rose. Ready-mix concrete rose 14 percent year-on-year, cables rose 21 percent, wood prices rose 15 percent and and cement was up 5 percent.
Arab News cited a recent Jones Lange LaSalle (JLL) report that found that construction activity had begun to pick up in Saudi Arabia.
“From a supply perspective, the first quarter recorded an increase in construction activity with around 7,700 and 2,000 units handed over in Riyadh and Jeddah, respectively,” JLL said, adding that “strong government support increased demand for residential properties in Q1 2021.”
New mortgage loans for individuals in Saudi Arabia “registered a recent historical performance,” increasing 33,000 contracts in January 2021, according to that report.
In addition to the increased activity in the residential sector, Riyadh is also set to see an additional 386,000 square meters of office space, 240 square meters of retail space and 2,800 new hotels rooms built this year.
