Romania: Administration and maintenance costs of office buildings will increase

The administration and maintenance costs of the office buildings in the portfolio of the Asset Services department of the real estate consulting company Colliers Romania could increase, on average, by 13 percent this year, from 9 percent in 2023.

Colliers Romania manages approximately 680,000 sqm of real estate, of which almost 600,000 sqm are offices and the rest industrial warehouses, which makes the company's data regarding administrative costs fairly representative of the entire market.

Thus, in 2023, the biggest increase in the administration and maintenance budgets of office buildings was in the area of waste costs – 40 percent compared to 2022. This increase is largely the result of a greater presence of employees in office buildings , which increased from a portfolio average of 40 percent at the beginning of the year to 55 percent at the end of the year. Also, significant increases of 12 percent were recorded in the costs of security and fire services, while the costs of cleaning services increased by 11 percent, being influenced by the two increases in the minimum wage in January and October 2023 .

"Starting next year, the new property tax system will lead to a significant increase in property tax, if we are guided by the information circulated in the public space. This category of costs is very important, because property taxes represent between 30 percent and 40 percent of a normal budget for the administration and maintenance of an office space," said Ştefania Baldovinescu, Senior Partner, Asset Services & Land Agency at Colliers Romania.