Construction Costs Benchmarking

Kingdom of Saudi Arabia

Q4 2022

Market Highlights
Saudi Arabia’s construction sector in particular,
World-class hospitality The Kingdom is targeted to be the Alternative procurement strategies Several massive sustainable
driven by the Kingdom’s overall popularity projects are underway in capital of entertainment, sport and are being adopted, appointing urban plan developments are
on the world stage, increased in line with the the Kingdom. Saudi Arabia art, evident in the development of Managing Contractors and ECI underway to accommodate
Vision 2030. PIF and its subsidiary companies aims to deliver 310,000 70+ entertainment projects aimed contract awards encouraging the market demand, drawing
completed hotel rooms by to improve the quality of life and contractor expertise during early together its fruition in the
are shaping the future of Saudi Arabia.
2030. transform the wider economy. stages of design and construction. next decade.

About Compass
Building Construction Low High Building Construction Low High Fit-out Construction Low High
SAR/m2 SAR/m2 SAR/m2 SAR/m2 SAR/m2 SAR/m2 Drawing on our extensive delivery experience,
Residential Retail Cinema industry-wide knowledge and sophisticated project
development tools, we facilitate the most proficient
The building costs for respective asset types including The building costs for respective asset types including The fit-out works costs for respective asset types
building construction works, and fixed fit-out works. building shell & core construction works, front-of-house including warm shell, architectural & MEP fit-out works,
path towards project success, overcoming
and back-of-house fit-out excluding the retail tenant area. specialist AV/IT installations, projectors, screens, seats, constraints and obstacles to deliver projects
Villa Standard 3,400 4,200 carpet, and lighting. effectively and efficiently for our Clients.
District Mall 4,500 6,000
Villa Mid-market 3,500 5,400 Cinema Standard 7,500 8,500 Specialising in start-to-finish project development solutions, our
Regional Mall 5,500 7,000 collective attention to detail, and our passion for getting everything
Villa Upper Mid-market 4,500 7,600 Cinema Boutique 8,500 9,500 right, helps define and solidify your goals, whilst establishing and
Apartment Standard 4,500 5,500 Car Park managing realistic schedules and budgets.
Cinema VIP 9,500 11,000
Apartment Mid-market 5,500 6,500 We lead construction projects from concept right through to
Basement / Underground 2,900 3,850 completion with services including:
Apartment Premium 6,500 8,500 Food & Beverage
On Grade 500 1,200 Development Management
The fit-out works costs for respective asset types Program Management
Hospitality Above Ground 1,800 3,200 including architectural, FF&E & MEP fit-out works, and Project Management
shop-front. Rate excludes variable cost items like lighting, Procurement Management
The building costs for respective asset types including kitchen equipment, AV/IT/security, and artwork. Commercial Management
building construction works, fixed fit-out works, kitchen Fit-out Construction Low High
SAR/m2 SAR/m2 Construction Management
and laundry equipment.
Restaurant Standard 4,000 5,500
Benchmarking Notes
3 Star Hotel 6,500 9,500 Offices Restaurant Mid-market 5,500 10,000 The m2 area is based on GIA measurement as defined by the RICS code of
The fit-out works costs for respective asset types measuring practise 6th edition.
4 Star Hotel 8,500 11,500 Restaurant High-end 10,000 17,500
including architectural & MEP fit-out works, specialist SAR/m2 rates are current as of Q4 2022.
5 Star Hotel 11,500 15,800 AV/IT/Security installations, and fixed FF&E Rates include contractor’s overhead & profit, and general requirements.
Rates assume a traditional build only procurement route, considering Tier 1
Office Standard 3,000 4,000 main contractor.
The rates in this document are indicative and subject to each project’s
Office Mid-market 4,000 6,800 requirements and specifications.
To find out more, contact:
Office High-end 6,800 9,000 Rates exclude: Contingency, inflation beyond Q4 2022, professional fees,
insights@compass-pc.com statutory fees, legal fees, sales & marketing fees, pre-opening costs, land
compass-pc.com costs, finance costs, client direct costs, loose FF&E (except for F&B fitout),
OS&E and VAT.

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