UK and European self-storage markets are positioned for recovery and expansion after a slow end to 2025, according to the latest research from Savills.
The real estate adviser notes that transactional activity across the UK and Europe remained subdued in the second half of 2025, due to several large processes that failed to complete.
Looking ahead, Savills anticipates that investment activity will focus on urban locations, in cities where supply remains constrained. It expects transaction volumes to recover as previously delayed processes return to the market, alongside newly launched opportunities.
In locations where there are limited acquisition opportunities, well-capitalised operators have increasingly chosen to build where they cannot buy. Groups including StoreEx, Compound and Rafter Group are delivering new assets designed to compete with legacy stock across key UK and European cities.
“Attractive opportunities continue to be seen across UK and European self-storage markets, especially within urban centres,” said Tom Atherton, strategy and market intelligence manager at Savills.
“Operational efficiency is expected to remain a key focus in 2026, with continued adoption of technology-led operating models, including store clustering, as operators seek to drive efficiency, reduce headcount and mitigate cost pressure. These dynamics, alongside the benefits of scale, are expected to support further improvement in operating margins.”
Ollie Saunders, head of self-storage at Savills, added: “As market conditions stabilise and capital becomes more deployable, we expect a recovery in self-storage investment activity in 2026. Platforms are more creative in how they scale, whether through using data to target development in underserved locations, management contracts or technology, and this flexibility will be key to unlocking growth across the UK and European markets.”
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