DAMMAM, 25 December 2003 — Housing compounds have incurred huge losses due to terrorist threats, especially after the blasts in Riyadh in May and November. Economists have estimated that housing compounds in Riyadh alone may have suffered losses of nearly SR400 million.
The Arabic magazine Al-Ahsa quoting economists said that the losses could go as high as SR600 million and that in the near future, compounds may witness an exodus of residents who would prefer to live in apartments and other safer locations. Real estate agents confirm that many foreigners now prefer to live elsewhere due to constant threats.
Housing compounds were once considered the safest option with a plethora of facilities but now foreigners consider them high-risk, saying that they are not worried about facilities as long as they are safe.
Moqbil Al-Shammary, a real estate agent in Dammam, says that the impact of terrorist activities is not only being felt by housing compounds but also apartments and shops in the vicinity. “Even land prices around housing compounds have declined considerably,” he said.
Housing compound managers admit that their compounds are the least sought after accommodation at the moment, adding they are receiving fewer inquiries and have fewer people renting their villas.
The rents charged by the housing compounds are high, ranging from SR40,000 to SR150,000 per year, depending upon the facilities and type of accommodation. Some compounds have already reduced their annual rent while others plan to do so.
Residents of housing compounds say that apart from security reasons, they want to move for social reasons.
“Compounds are more like fortified zones and they are an absolute nightmare for visitors,” said a resident at Euro Village, a prestigious compound in Alkhobar. “My friends and relatives avoid coming to my compound purely because they can’t bear so many checkpoints and the harassment. We are virtually cut off from social life. I hate this type of living,” he said.
Housing compounds say they have incurred heavy expenses in upgrading their security systems. In the past three months, several housing compounds have enhanced their security with sophisticated state-of-the-art technology, said Zeeshan Haider of Jamal Jaroudi, a Riyadh security company.
He said some of the systems his company provided were the most advanced and sophisticated available. He said that awareness of security has increased and if “we go by the trend, then it won’t be long before all residential quarters as well as business premises will be protected by the most advanced security systems.”
It is estimated that in the coming months more than SR300 million will be spent on improving security in housing compounds in Riyadh and the Eastern Province.
After the May blast, many residents opted to shift from their housing compounds to elsewhere in Alkhobar. However, some Westerners continue to stay in housing compounds saying that at least there is some kind of security arrangements whereas in villas and apartments there are none.
