Savills: UK & European self-storage market to consolidate

Savills forecasts significant consolidation in the UK and European self-storage markets over the next ten years, leading to the emergence of several "mega platforms" with over 500 facilities each. 

Self Storage - Savills

This shift is expected to establish Self Storage as a prime institutional asset class in the region.
This consolidation, driven by mergers and acquisitions, is anticipated to accelerate around 2026 as investors seek high-quality portfolios. Europe's low storage penetration rate (0.028 m2 per capita, compared to 0.084 m2 in the UK and 0.65 m2 in the US) highlights immense growth potential.
Larger platforms will benefit from greater operational efficiency, reduced capital costs, and stronger brand recognition through shared marketing, procurement, and technology. Currently, eight platforms exceed €1 bn in value, attracting institutional investment and facilitating cross-border expansion.
The sector has transformed from a fragmented market to a recognised institutional asset class. The number of facilities in the UK and Europe surged by nearly 250% from 1,716 in 2012 to 6,076 in 2023. Despite this growth, demand continues to outstrip supply, fuelled by trends like hybrid work, high housing costs, urbanisation, smaller homes, and storage needs from SMEs and e-commerce.
Although investment volumes saw a slowdown in 2025, Self Storage still offers defensive, inflation-linked income. Operators are using technology to maintain margins, and investors are seeing current pricing discrepancies as a strategic acquisition opportunity.
Tom Atherton, Strategy & Market Intelligence manager at Savills, said: “The macroeconomic 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.”