Colliers: Office service charges see the biggest annual increase in recent years

Service charges for modern office buildings in Romania rose by approximately 10% in the 2025 allocated budgets, the sharpest increase recorded in recent years, according to data analyzed by Colliers, a leading player in property management for this asset class.

The rise is primarily driven by higher labour costs amid a tight job market, with key cost categories such as physical and fire security, cleaning, and technical maintenance seeing notable increases.

The average service charge for Class A office buildings – based on a selected basket of projects, mostly in Bucharest – reached nearly 4.3 EUR/sqm. The cost is about 10% higher compared to last year, marking the most substantial jump in at least five years. Colliers, the top property management firm in Romania by office GLA under administration, reviewed a portfolio of roughly 475,000 sqm of office space, with about 400,000 sqm in Bucharest and the remainder in Cluj-Napoca.

“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”, says  Mihai Iustin, Operational & Technical Manager | Director | Asset Services at Colliers.

According to the Colliers analysis, several budget categories recorded similar increases of around 10% for 2025 – including security, property taxes, and management services. Cleaning costs climbed even higher, reflecting the return of employees to office spaces and the associated need to scale up on-site teams and consumables. Property tax hikes were also notable and now represent one of the most significant costs per square meter, with expectations for further upward movement. In contrast, technical maintenance and insurance saw more moderate increases, generally in line with inflation.

It’s also worth noting that bulk utility costs – including energy, water, and waste – are not included in service charges. These are billed separately to tenants based on actual consumption and, while also on the rise post-pandemic, they fall outside the scope of this analysis.

“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 EUR/sqm last year (excluding utilities), while Poland averaged around 4.5 EUR/sqm — the gap largely driven by higher wages and property taxes there”, adds  Mihai Iustin.

Colliers anticipates that ongoing wage growth, driven by labour market constraints, will continue to exert upward pressure on service charges. Furthermore, there’s the possibility of increased property taxes in the near future, as Romania, which currently has relatively low property tax revenues as a share of GDP, seeks to improve fiscal balance in a wider European context.

Colliers’ Property Management division currently oversees around 660,000 square meters of commercial space, serving approximately 400 tenants and managing operational and service charge budgets exceeding 30 million euro annually. Backed by strong operational standards, in-depth local knowledge, and a tenant-focused approach, the team plays a vital role in unlocking value from the assets it manages. This excellence was recognized at the CIJ Awards 2024, where Colliers was named ”Best Property Management Company of the Year”.