Office fit-out costs in Bucharest increased by 12 percent in 2024, but remain among the most competitive in the CEE

The average office fit-out costs in Bucharest increased by 12 percent in 2024 compared with the previous year, surpassing the €1,000/ sq. m threshold. This evolution aligns with regional trends, as most capital cities have seen cost increases ranging between 8-15 percent, according to data from the Cushman & Wakefield Echinox real estate consultancy company, based on the Fit-Out Cost Guide 2025.

Key factors driving this trend include rising labor costs, fueled by salary increases in the construction sector, and materials’ prices which, despite partial stabilization, remain directly impacted by inflation. Investments in sustainable solutions and compliance with Environmental, Social and Governance (ESG) standards also contribute to higher initial costs, while enhancing long-term energy efficiency.

Andrei Ianculescu, Head of Project & Development Services at Cushman & Wakefield Echinox: “Although raw material prices have not seen significant increases over the past year, finished products have continued to become more expensive, mainly as a result of labor, utilities, transportation and carbon footprint considerations. Labor costs have been having the biggest impact on office fit-out expenses, while the growing demand for ESG standards and green certifications is becoming a priority for tenants. Smart building solutions such as automated lighting, climate control and security systems are also a highly popular, adding value to their respective projects. These technologies not only reduce utility costs through optimized consumption, but also enhance employee comfort, which can positively impact productivity and satisfaction.”

Despite these increases, Bucharest remains one of the most competitive office markets in the CEE region, with an average fit-out cost of €1,056/ sq. m, including all interior works across various specialties, building management systems (BMS), furniture, audio-video equipment, professional services (project management, health and safety coordination and site supervision), as well as contingency costs.

In comparison, fit-out costs in Bucharest are 17 percent lower than in Warsaw and 14.5 percent below those in Prague, maintaining the city’s appeal for companies setting up offices in this part of Europe.

Depending on the complexity of the project, materials and solutions used, as well as how the space is delivered to the tenant, fit-out budgets can range from approximately €800/ sq. m to nearly €1,600/ sq. m. The largest share of costs comes from architectural and installation works (50 percent) and furniture (approximately 28 percent), both of which being significantly impacted by price increases. Other cost components include audio-video systems, IT technology, project management and design services.

The moderate cost increase in Romania is influenced by a stabilization of the construction market and a slight slowdown in inflation. However, budgetary pressures remain high due to rising labor costs and the volatility of construction material prices.

The most expensive office fit-out markets in Europe include London – €2,671/ sq. m, Hamburg – €2,512/ sq. m, Munich – €2,432/ sq. m, Frankfurt – €2,408/ sq. m and Berlin – €2,333/ sq. m.

Even though the economic challenges and fluctuations in the real estate sector persist, demand for high-quality office spaces remains strong, particularly in areas with developed infrastructure and easy access to public transportation. This trend continues to drive investments in premium fit-out solutions, with a focus on sustainability and smart technologies.

Romania remains an attractive destination for international companies, thanks to competitive costs and a skilled workforce. In this context, the optimization of fit-out budgets is becoming essential for both occupiers and investors.

As businesses rethink their real estate strategies in response to the hybrid work model and employee-centric office designs, the demand for efficient, engaging office spaces will continue to fuel fit-out investments.

Project management services involve overseeing, coordinating and supervising office, retail, residential, mixed-use, industrial and logistics fit-out projects. This includes working closely with design teams, consultants and contractors across all key project phases.

Over the past two years, the Cushman & Wakefield Echinox Project Management Department has delivered projects covering 480,000 sq. m of office, retail, industrial and logistics spaces for both landlords and tenants. In regard to the office segment, the completed projects involved a total budget of approximately €33 million, with the largest one exceeding €2 million.