December 12, 2024
The European self-storage market is experiencing dynamic growth, driven by urbanization, housing shortages, e-commerce expansion, and businesses adapting to shifting economic conditions. With over 56 million square meters of net rentable space across 12,000 facilities, the sector is embracing challenges while tapping into significant opportunities.
The UK leads the market with 37% of total capacity, supported by high housing costs, smaller living spaces, and strong e-commerce demand. Mainland Europe’s key markets—Germany, France, and Spain—account for 53% of regional inventory. These three markets are united by key demand drivers for self-storage – urbanization, escalating housing costs, and the rapid expansion of e-commerce – demonstrating resilience amidst inflationary pressures. Meanwhile, emerging markets like Belgium, the Netherlands, Norway, and Poland are attracting increased investment, signaling immense growth potential.
FEDESSA’s latest Annual Industry Report, highlights a milestone year, with self-storage transactions already reaching €875 million – three times the previous year’s total – and €546 million in pending deals, positioning the year for its fifth consecutive record in transaction volumes. This surge reflects growing investor confidence in the sector’s long-term promise. Despite economic hurdles like inflation, high interest rates, and rising operational costs, self-storage continues to thrive, offering less than an average 1 square meter of space per capita across a population of 740 million. FEDESSA’s findings also reveal that 37% of the public remains unaware of self-storage, underscoring vast opportunities for the sector.
As trends like workforce migration, downsizing, and urban expansion drive demand, the European self-storage market is poised to flourish. By embracing innovation and navigating economic challenges, operators are ensuring the sector remains vibrant, adaptable, and positioned for sustainable growth in a rapidly changing environment.
The European self-storage market is expanding steadily, shaped by urbanization, housing market pressures, e-commerce growth, and businesses adapting to economic shifts. While these demand drivers remain consistent, price shifts over the past year highlight diverse and evolving market dynamics. Rates in Germany saw an 11.8% rise due to urban expansion and housing costs, while France’s modest 0.7% growth reflects steady urban demand. Spain recorded a 0.15% decline, impacted by inflation and seasonal tourism trends, even as urban and e-commerce demand grows in cities like Madrid and Barcelona.
The UK, Europe’s largest and most mature self-storage market, thrives due to persistent housing affordability challenges, smaller living spaces, and rapid e-commerce growth. Urban centers like London, Birmingham, and Manchester remain key hubs, supported by robust infrastructure and steady demand. Meanwhile, Germany’s strong economy and rising urbanization fuel self-storage needs in cities like Berlin and Munich, where high housing costs and limited living space intensify demand. Business expansion further drives Germany’s market as companies seek flexible storage solutions. Download the entire report
In France, growth is more measured, reflecting a stable housing market. Demand is primarily concentrated in densely populated areas like Paris, where small businesses and residents seek additional space. Moderate economic growth supports steady but less aggressive expansion compared to neighboring countries. Spain, by contrast, is experiencing growth driven by the core demand factors propelling expansion across Europe’s leading markets. Seasonal tourism further amplifies storage needs, particularly in cities like Madrid and Barcelona, where housing constraints and remote working trends fuel demand for flexible solutions.
Emerging markets like Belgium, the Netherlands, and Poland are gaining traction, with significant investments from REITs like Safestore and South Africa-based Redefine Properties. Meanwhile, Scandinavian markets are also on the rise, with Norway emerging as a frontrunner, driven by its high urbanization, strong purchasing power, and rising property costs. Similarly, Iceland presents significant untapped potential, mirroring growth trends observed throughout the region.
The European self-storage sector experienced a remarkable surge in investment activity in 2024, with transaction volumes set to surpass €1 billion. The UK led the momentum, drawing significant capital thanks to its mature market and consistent returns.
The competitive landscape is evolving, with industry giants like Safestore, Shurgard, and Big Yellow leveraging their scale and established brand dominance in mature markets. At the same time, ambitious newcomers like City Self-Storage and Homebox are rapidly expanding into less saturated regions, signaling a growing appetite for innovation and market penetration. Europe’s leading self-storage REITs – Shurgard, Safestore, and Big Yellow – reported solid growth in 2024, underscoring the sector’s ability to adapt and thrive amid a dynamic investment climate.
- Shurgard increased revenue by 16%, driven by UK and German expansions through its Lok’nStore and Prime Storage acquisitions. Same-store revenue rose 4.7%, supported by higher in-place rents. However, financing and tax costs associated with its acquisitions contributed to rising expenses. Shurgard has over 405,000 square meters in its 2024-2026 development pipeline, reflecting a €1.2 billion investment focused on the UK, Germany, and the Netherlands. offset rising operating expenses. Big Yellow’s pipeline includes 13 new developments, focusing heavily on the London market.
- Safestore reported a 1.1% revenue increase and maintained healthy occupancy levels of 80.3% across its 203-store portfolio spanning Belgium, France, the Netherlands, Spain, and the UK. Occupancy gains in its UK locations primarily drove growth.
- Big Yellow achieved 3% revenue growth despite a slight year-over-year decline in occupancy to 80.9%. The company attributed its performance to rental rate growth, which offset rising operating expenses. Big Yellow’s pipeline includes 13 new developments, focusing heavily on the London market.
Europe’s self-storage market is poised for moderate growth through 2025, balancing challenges with significant opportunities. The UK will remain a cornerstone of market performance, while emerging markets in Poland, the Netherlands, and Belgium are expected to see some of the highest growth rates as awareness and demand expand.
Rising construction and operational costs are squeezing margins, particularly for smaller operators. Regulatory barriers like zoning and permitting restrictions in cities like London and Paris complicate new developments. Economic pressures, including inflation and reduced consumer spending, further limit pricing power, especially in mid-tier markets.
Despite challenges, opportunities in underserved regions, rising demand for specialty storage solutions, and advancements in digital platforms and automation drive growth. Key trends include market consolidation, innovative storage solutions, and investment in underdeveloped areas. While economic and regulatory pressures may slow short-term expansion, the sector’s adaptability and strategic opportunities ensure long-term growth.
StorTrack is the leading provider of self-storage market data and insights, enabling operators, investors, and developers to make informed, data-driven decisions. Since 2014, StorTrack has delivered accurate, actionable market analytics to self-storage professionals worldwide.
With coverage spanning over 4,500 facilities in the UK and more than 8,000 across 23 European countries, StorTrack offers access to market trends, rate data, and development insights. Stortrack’s tools, including the Explorer platform, custom reports, and API, provide clarity on market feasibility, competitor pricing, and demand trends, helping self-storage professionals stay ahead in a rapidly evolving industry.
Whether you’re optimising pricing strategies, assessing market opportunities, or expanding your portfolio, StorTrack is your trusted partner for success in the self-storage sector in Europe and beyond.
