São Paulo – The price of building materials, especially steel, rose in the first quarter (Q1) of this year in Saudi Arabia, as construction activity began to recover. The upturn comes after the slowdown caused by the COVID-19 pandemic in 2020, newspaper Arab News reported in its website.
The price of steel surged 33% year-on-year to SAR 3,514.73 (USD 937.26) per ton in Q1, according to the latest data from the General Authority for Statistics (GASTAT).
The cost of ready-mix concrete rose 14% year-on-year to SAR 203.9 (USD 54). Cable prices rose 21% to SAR 38.33 (USD 10) per meter. Wood prices roses 15%, and cement was up 5%.
The Saudi newspaper points out that, while steel price made a high surge, the price growth slowed as the year progressed, falling from a 40% growth in January.
The increase in prices for materials comes as construction activity increased in the beginning of the year, according to a report by real estate consultancy firm JLL. It says that 7,700 units were handed over in Riyadh in Q1, around 2,000 units were added in Jedda. Over 36,000 units in Riyadh and 12,000 units in Jeddah are due to be delivered this year.
Translated by Guilherme Miranda
