The UK and European self-storage market is set to undergo significant consolidation over the next decade, with multiple ‘mega platforms’ of more than 500 facilities expected to emerge, according to new research published by Savills.
Eight platforms in Europe now exceed €1bn in value, enabling meaningful allocations by institutional investors and supporting continued cross-border expansion.
In 2023, there were 6,076 self-storage facilities across the UK and Europe, up from 1,716 in 2012, representing an almost 250% increase over the past decade.
Despite this growth, structural undersupply persists, and demand continues to rise, driven by factors such as hybrid working, elevated housing costs, urbanisation, smaller dwelling sizes and storage needs from small and medium-sized enterprises (SMEs) and e-commerce businesses, according to Savills.
Tom Atherton, strategy and market intelligence manager at Savills, said: “The macro-economic environment is stabilising and interest rates have eased from their 2023 peaks, although both capital and operational costs remain above pre-2020 levels. Financing conditions are expected to improve gradually through 2026. However, the higher cost of debt means investment decisions will continue to be driven by operational fundamentals, with a focus on platform efficiency, technology and demonstrable margin control.”
Ollie Saunders, head of self-storage at Savills, added: “We expect self-storage to continue to be a key beneficiary of capital rotation into operational real estate. Supported by structural undersupply, scalable operating platforms, and stable inflation-linked income, the market is well positioned for continued institutional expansion and sustained long-term growth across the UK and Europe.
“It is an exciting time for the sector, with consolidation, large-scale mergers and acquisitions, and selective entry by investors seeking high quality portfolios all likely to be defining features of 2026. We look forward to supporting our clients on the many opportunities that lie ahead.”
