A large number of compounds in the Saudi city of Alkhobar are only partially occupied and are engaged in price wars in an attempt to boost occupancy. According to Arab News, the hardest hit have been the medium-priced compounds which charged from SR55,000 to SR80,000. Most of them had 30 percent to 50 percent occupancy by Western expatriates.
After the terrorist attack in May last year, many compound occupants left and those which had been full, suddenly found themselves with many empty units. When contacted by the newspaper, several compounds confirmed that rents had declined.
