Savills has examined the European self-storage market in a recent publication. Enclosed you will find the results:
International real estate consultant Savills expects the UK and European self-storage market to undergo significant consolidation over the next decade. The plan is to create multiple “mega-platforms” with more than 500 locations, making self storage a leading institutional asset class across the region.
Savills expects consolidation and platform-based mergers and acquisitions to dominate 2026 as investors increasingly seek high-quality portfolios and selective entry opportunities. The comparatively low penetration rate in Europe of just 0.3 square feet of warehouse space per capita, compared to less than 0.9 square feet in the UK and around 7 square feet in the US, illustrates the significant expansion potential and diverse opportunities for investors.
According to Savills, a larger platform size will bring significant benefits, including greater operational efficiency, lower capital costs and a stronger brand presence. Larger operators are already demonstrably benefiting from joint marketing and procurement structures, integrated technologies and lower financing costs. This leads to market-defining brands with significant pricing power. Meanwhile, eight platforms have reached a value of over €1 billion, enabling significant allocations from institutional investors and supporting further cross-border expansion.
The market has evolved from a highly fragmented entrepreneurial landscape to a clearly recognizable institutional sector, supported by scalable platforms and growing portfolio liquidity. For example, there were 6,076 self-storage locations in the UK and Europe in 2023, up from 1,716 in 2012, an increase of almost 250% in a decade. Despite this growth, there is still a structural undersupply, while demand continues to rise. Drivers for this include hybrid working, rising housing costs, urbanization, smaller living spaces, and the additional storage needs of small and medium-sized enterprises and e-commerce companies.
While investment volumes declined in 2025, according to Savills, self storage continues to deliver defensive, inflation-linked returns. Operators are increasingly using technology and digital distribution channels to secure margins, while investors are looking to current price distortions and net asset value discounts as an opportunity for strategic acquisitions.
Tom Atherton, Strategy & Market Intelligence Manager at Savills, says: “The macroeconomic environment is stabilising and interest rates have fallen from their peaks in 2023, although capital and operating costs remain above pre-2020 levels. Financing conditions are expected to improve gradually over the course of 2026. Due to the higher cost of debt, investment decisions continue to be strongly driven by operational fundamentals, with a clear focus on platform efficiency, technology and proven margin control.”
“We expect that self-storage will continue to be one of the key beneficiaries of the capital rotation into operationally oriented real estate segments in the future. The market is excellently positioned for further institutional expansion and sustainable, long-term growth in the UK and Europe, thanks to structural undersupply, scalable operating platforms and stable, inflation-linked earnings. It’s an exciting time for the sector, with consolidation, large-scale mergers and acquisitions, and selective investor entry, with a focus on high-quality portfolios, expected to be the defining features of 2026. We look forward to supporting our customers in the many opportunities that lie ahead,” said Ollie Saunders, Head of Self Storage at Savills.
You can also find more information in the accompanying spotlight
