Construction Costs Benchmarking

Kingdom of Saudi Arabia

Q1 2023

Market Highlights
Riyadh, the capital of Saudi Arabia, is witnessing
rapid development to become a contender
amongst the world’s major cities in all sectors
namely entertainment, leisure, hospitality, retail,
theme parks, residential, and infrastructure,
demonstrating that the Kingdom’s capital is on a
growth trajectory.
Saudi market witnessed a fast economy
growth by 8.7% in 2022 and 5.4% in
Q4-2022. Real GDP of non-oil activities
during the year 2022 grew by 5.4%
compared to the previous year 2021
as reported by General Authority for
Statistics (GASTAT).
According to industry sources, more
than 5,200 construction projects are
currently ongoing in Saudi Arabia at a
value of USD 819 billion. These projects
account for approximately 35% of the
total value of active projects across the
Gulf Cooperation Council (GCC).
Saudi Arabia approves airports
and major infrastructure projects
cooperating with international and local
investors under the PPP route. This step
will boost the construction market and
also enhance the connectivity of Saudi
Arabia to the entire world.
Major growth in new destination
developments, as evident in heritage
hospitality resorts in different parts of
Saudi Arabia, such as lodges, camps,
heritage, eco-tourism and farming
resorts.

Low
About Compass
High Low High Low High
Building Construction Building Construction Fit-out Construction
SAR/m2 SAR/m2 SAR/m2 SAR/m2 SAR/m2 SAR/m2
Drawing on our extensive delivery experience,
knowledge and sophisticated project development
Residential Retail Cinema industry-wide tools, we facilitate the most
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 including proficient path towards project success,
building construction works, and fixed fit-out works. building shell & core construction works, front-of-house and warm shell, architectural & MEP fit-out works, specialist overcoming constraints and obstacles to deliver
back-of-house fit-out excluding the retail tenant area. AV/IT installations, projectors, screens, seats, carpet, and projects effectively and efficiently for our Clients.
Villa Standard 3,400 4,200 lighting.
District Mall 4,500 6,000 Specialising in start-to-finish project development solutions,
Villa Mid-market 3,500 5,400 Cinema Standard 7,500 8,500 our collective attention to detail, and our passion for getting
Regional Mall 5,500 7,000 everything right, helps define and solidify your goals, whilst
Villa Upper Mid-market 4,500 7,600
Cinema Boutique 8,500 9,500 establishing and managing realistic schedules and budgets.
Apartment Standard 4,500 5,500 We lead construction projects from concept right through to
Car Park Cinema VIP 9,500 11,000
completion with services including:
Apartment Mid-market 5,500 6,500
Food & Beverage Development Management
Apartment Premium 6,500 8,500 Basement / Underground 2,900 3,850
Program Management
On Grade 500 1,200 The fit-out works costs for respective asset types including
Project Management
Hospitality architectural, FF&E & MEP fit-out works, and shop-front.
Above Ground 1,800 3,200 Rate excludes variable cost items like lighting, kitchen Procurement Management
The building costs for respective asset types including equipment, AV/IT/security, and artwork. Commercial Management
building construction works, fixed fit-out works, kitchen and Low High
laundry equipment. Fit-out Construction Restaurant Standard 4,000 5,500 Construction Management
SAR/m2 SAR/m2

3 Star Hotel 6,500 9,500 Restaurant Mid-market 5,500 10,000 Benchmarking Notes
Offices
The m2 area is based on GIA measurement as defined by the RICS code
4 Star Hotel 8,500 11,500 Restaurant High-end 10,000 17,500 of measuring practise 6th edition.
The fit-out works costs for respective asset types including
architectural & MEP fit-out works, specialist AV/IT/Security SAR/m2 rates are current as of Q1 2023.
5 Star Hotel 11,500 15,800
installations, and fixed FF&E. Rates include contractor’s overhead & profit, and general requirements.
Rates assume a traditional build only procurement route, considering
Office Standard 3,000 4,000 Tier 1 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: Rates exclude: Contingency, inflation beyond Q1 2023, professional
Office High-end 6,800 9,000 fees, statutory fees, legal fees, sales & marketing fees, pre-opening
insights@compass-pc.com
costs, land costs, finance costs, client direct costs, loose FF&E (except
compass-pc.com for F&B fitout), OS&E and VAT.