This week, the much anticipated 2024 European Self Storage Industry Report, produced by FEDESSA in collaboration with CBRE, was officially released. During the FEDESSA Conference & Trade Show in Stockholm, industry experts Oliver Close and Callum Paddock from CBRE took the stage to present the key findings.
The report offers an in-depth analysis of the current state of the self storage market across Europe, highlighting the latest trends in the industry. It also provides valuable insights into public perceptions of self storage, making it an essential resource for investors and operators navigating this rapidly evolving sector.
Despite recent economic challenges, demand for self storage remains robust. Capital investment in the sector has steadily increased year-on-year since 2020, with a wide variety of investor groups actively pursuing opportunities in the self storage market.
Europe’s self storage industry now has 9,575 stores in operation, totalling 16.5 million sqm in gross area.
2024 Key Findings:
- The leading four markets account for 68% of Europe’s total number of stores.
- The UK continues to dominate with 34.6% market share, followed by France (15.8%), Germany (12.6%), and Spain (11.6%).
- Year-to-date transaction volumes are €875M, 3x higher than YTD numbers from the 2023 FEDESSA Survey.
- 37% of the public have not heard of self storage, and a further 35% have heard of self storage but know nothing about the sector.
- Average occupancy across Europe dropped from 79.9% in 2023 to 78.7% in 2024. The UK, Spain, Norway, Austria, and Switzerland saw occupancy decreases, while Ireland, Germany, and France reported significant gains.
- Average rental returns rising by 2% to €296.53 per sq. m annually. Portugal, Spain, the Netherlands, Germany, and Belgium had increases over 5%, while Finland experienced a decline.
- Increasing pressure on operators to provide online pricing and a full online booking service for customers.
- The use of storage apps has increased, up 25% from last year.
- Self storage operators are investing more in security as technology improves and becomes more affordable, using AI to flag suspicious behaviour, along with enhanced CCTV and individual unit monitoring.
- Remotely managed stores across Europe has increased over the last 12 months, however, the technology is more prominent in markets such as Austria, Norway and Sweden.
- Enquiries received through company websites has increased from 64% in 2023 to 67% this year.
- Artificial Intelligence (AI) is being adopted across many industries, and self storage is no exception.
- 69% of survey respondents plan to implement AI in their businesses in 2024.
- Businesses remain optimistic about increasing profits with 72% expecting an increase, and 92% no decrease in the next 12 months.
Source: FEDESSA / CBRE