This surge is driven by higher labour costs amidst a tight job market, impacting key cost categories such as security, cleaning, and technical maintenance.

The average service charge for Class A office buildings, mainly in Bucharest, has reached nearly €4.3 per sqm, a 10% increase compared to the previous year and the sharpest rise in at least five years. The result is based on a sample of 475,000 sqm of office space based in Bucharest and Cluj-Napoca.

Mihai Iustin, Operational & Technical Manager | Director | Asset Services at Colliers, said: “Service charge inflation remains a concern, largely due to the ongoing labour market pressure and successive increases in the minimum wage, which make it harder for employers to attract and retain personnel in certain roles. Additionally, broader inflationary trends are pushing up the cost of goods and services, including property valuations, which further impact property taxes.”

The analysis also revealed that several budget categories, including security, property taxes, and management services, recorded similar increases of around 10%. Cleaning costs saw even higher increases, driven by the return of employees to offices and the subsequent need for more on-site staff and consumables. Property tax hikes were also significant, now representing one of the most substantial costs per square meter, with expectations for continued increases.

In contrast, technical maintenance and insurance costs showed more moderate increases, generally in line with inflation. Utility costs, such as energy, water, and waste, are billed separately and are not included in these service charges.

“From a regional perspective, Romania's service charges are quite aligned with those of neighbouring countries, which is to be expected given similar wage levels. For example, our colleagues report that service charges in Hungary stood at approximately €3.9 per sqm last year (excluding utilities), while Poland averaged around €4.5 per sqm — the gap largely driven by higher wages and property taxes there,” Iustin added.

Going forward, Colliers anticipates that ongoing wage growth and the potential for increased property taxes will continue to drive service charges upwards.