Cluttons Bahrain head Harry Goodson-Wickes has expected Bahrain real estate market to extend growth on increased stability and job creation, he told Gulf Dailynews.

"Although confidence levels are gradually improving, low activity levels in the office market have heightened further by the supply overhang from the growth spurt recorded prior to the global recession," Cluttons Bahrain head Harry Goodson-Wickes told the GDN in an exclusive interview.

"We expect office rents to remain close to, or at current levels for the remainder of the year, as overall confidence is yet to fully recover."

According to Mr Goodson-Wickes, the hydrocarbon sector remains a significant generator of jobs and therefore tenants, with direct implications for the kingdom's residential lettings market.

"As additional sectors continue to expand, the lettings market is expected to benefit from an expanding tenant base and a gradual improvement in overall demand over the medium term.

"With landlords remaining on the back foot for the time being, we do not anticipate a rental value surge during the year."

Cluttons expects that landlords would remain keen to keep tenants in situ while showing greater flexibility around asking rates.