Savills predicts major consolidation in UK and European Self Storage markets
International real estate advisor Savills predicts that the UK and European Self Storage market will undergo significant consolidation over the next decade, with multiple “mega platforms” of more than 500 facilities expected to emerge, positioning Self Storage as a leading institutional asset class across the region.
The advisor anticipates that consolidation and platform-scale mergers and acquisitions will define 2026, as investors seek quality portfolios and opportunities for selective entry. Europe’s comparatively low penetration rate of just 0.3 sq ft of storage space per capita, compared with less than 0.9 sq ft in the UK and around 7 sq ft in the US, highlights the considerable scope for expansion and the depth of opportunity for investors.
According to Savills, increased platform scale will deliver substantial benefits, including greater operational efficiency, lower cost of capital, and enhanced brand visibility. Larger operators are already realising measurable advantages through shared marketing, procurement, technology integration, and lower financing costs, creating dominant brands with significant pricing power. Eight platforms now exceed €1 billion in value, enabling meaningful allocations by institutional investors and supporting continued cross-border expansion.
The market has evolved from a fragmented, entrepreneurial landscape into a recognisable institutional sector supported by scaled platforms, and portfolio liquidity. 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.
While investment volumes were tempered in 2025 according to Savills, Self Storage continues to deliver defensive, inflation-linked income. Operators are leveraging technology and digital sales channels to sustain margins, while investors view current pricing dislocation and Net Asset Value (NAV) discounts as a window for strategic acquisitions.
Tom Atherton, strategy & market intelligence manager at Savills, says, “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, says,“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.”