Full Details — What Savills Is Predicting
Investment Rebound in 2026
Savills reports that transaction activity in the self‑storage sector across the UK and Europe was muted in late 2025 but is expected to significantly rebound in 2026 as delayed deals return to the market and new opportunities emerge. Investors are showing renewed confidence driven by fundamental demand and constrained supply in key urban centres — especially cities where self‑storage uptake remains strong. (Savills)
Focus on Urban, High‑Demand Locations
The rebound isn’t uniform — capital is expected to concentrate in cities and regions where:
- occupancy rates are high
- supply is limited relative to demand
- space is at a premium (e.g., London, Manchester, Paris, Berlin)
Investors are targeting assets in these strategic markets because they combine resilient tenant demand with strong rental growth fundamentals. (InsideSelfStorage)
Why Activity Was Soft in Late 2025
Transaction volumes dipped in late 2025 mainly because:
- several large deals were delayed or postponed
- investors remained cautious amid broader macroeconomic uncertainties (e.g., interest rates, cost of capital)
Savills notes these weren’t declines in fundamental interest but timing issues — meaning many pending sales may simply close later in 2026. (MarketScreener)
Operators Scaling and Technology Focus
Operators themselves are responding to the expected rebound by:
- scaling up portfolios
- focusing on digital services and technology to improve access, pricing, and customer experience
- evaluating new facility development where local demand outpaces supply
This reflects a broader industry shift toward data‑driven growth strategies, not just standard rental operations. (InsideSelfStorage)
Why Self‑Storage Is Attractive to Investors Now
1) Resilient Demand Even in Tough Markets
Self‑storage has continued to show stable occupancy and rental growth across the sector despite broader economic slowdowns — a signal many investors see as indicating long‑term resilience. Industry reports show strong consumer use, especially in urban markets where space and housing costs are high. (cbre.co.uk)
2) Structural Growth in Europe’s Self‑Storage Market
In many European countries, including the UK, self storage penetration remains below US levels, suggesting considerable untapped market potential. This makes the sector especially interesting for capital seeking diversification into real asset classes with growth tailwinds.
3) Capital Rotation into Alternative Real Estate
Investors have been reallocating funds from more traditional real estate sectors (like office space and secondary retail) into “alternative” sectors that show reliable income streams and growth prospects — self‑storage is one of them. (cbre.co.uk)
Expert Commentary “Rebound” Doesn’t Just Mean Recovery
Experts emphasise that the self‑storage rebound isn’t simply a return to pre‑downturn conditions — it suggests new capital flows, especially in institutional and cross‑border investing, are seeking stable, demand‑driven segments of the real estate market. Savills similarly expects transaction volumes to rise sharply as postponed deals complete and investors hunt yield. (Savills)
Opportunistic vs Core Investment Shifts
Beyond immediate rebound expectations, many investors are shifting from opportunistic strategies (high‑risk, high‑return) toward core and core‑plus strategies in sectors like self‑storage that offer steady income plus growth potential. This reflects a broader trend toward risk mitigation and predictable returns in commercial real estate. (Savills)
The UK’s Position as a Leader
The UK remains one of Europe’s most mature and investible self‑storage markets, with high public awareness, strong urban demand, and a large installed base of facilities. Industry research shows the UK accounts for a significant share of Europe’s self‑storage space and investment activity, making it a key hub for transaction volume and investor interest. (IMARC Group)
What This Means for Property Investors
Potential impacts include:
- Increased deal activity in 2026 as delayed transactions close
- Renewed international investment interest, especially in core European cities
- More institutional capital entering self‑storage as a distinct real estate asset class
- Expansion of technology‑led operations to optimise rental income
Bottom Line
Savills predicts a strong rebound in UK and European self‑storage investment activity in 2026, driven by returning deals, targeted urban demand, and increased investor confidence in the sector’s fundamentals. This rebound reflects both pent‑up transaction flow and longer‑term structural trends that position self‑storage as a resilient and attractive commercial real estate segment. (Savills)
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Savills Predicts Rebound in UK & European Self‑Storage Investment — Case Studies & Commentary
Savills, the global real estate advisor, forecasts a significant rebound in self‑storage investment activity across the UK and Europe in 2026 after a softer late‑2025. This rebound is driven by strong underlying demand, limited supply of prime space in key urban markets, and shifting investor strategies toward alternative real estate sectors.
Below are real‑world style case studies and expert interpretations that show how these trends are playing out on the ground and what industry commentators are saying.
Case Studies
Case Study 1 — London: Premium Space, Steady Occupancy
Context:
In central and Greater London, classic commercial assets like offices have seen investment caution due to hybrid working trends. But self‑storage occupancies have remained high — driven by urban residents, small businesses, and downsizing households.
Developments:
- A mid‑size self‑storage operator renewed leases on multiple facilities, citing very high occupancy rates even during broader real estate slowdowns.
- Investors who had been hesitant in 2025 began re‑entering the market in early 2026 thanks to improved debt pricing and clearer economic signals.
Impact:
• Shows self‑storage’s resilience versus traditional commercial sectors.
• Demonstrates investor willingness to acquire income‑producing assets even amid broader uncertainty.
Case Study 2 — Manchester: Borough‑Level Growth & New Product
Context:
Manchester’s property market overall has shown renewed investor interest in parts of 2025. Self‑storage forms part of that mix — especially smaller neighbourhood facilities that serve renters, students, and small business owners.
Developments:
- A local private investor group acquired two facilities on the edge of the city centre, citing growing local demand.
- The group is renovating one site to include flexible workspace and online booking tech — effectively combining storage with hybrid office demand.
Impact:
• Signals that portfolio expansion is a key part of rebound activity.
• Shows operators becoming more tech‑driven and customer‑centric.
Case Study 3 — Paris & Berlin: International Capital Inflow
Context:
Prime European cities like Paris and Berlin are meaningful parts of the rebound forecast because they combine high rents, limited land, and sustained demand for storage.
Developments:
- An institutional investor consortium purchased a multi‑site European portfolio including facilities in both cities.
- The deal featured longer‑term leases and above‑average valuations compared with 2025 transactions — indicating renewed confidence.
Impact:
• Underlines cross‑border capital returning to the sector.
• Points to a flight toward alternative income‑generating real estate.
Expert & Industry Commentary
1) “Pent‑Up Deal Flow Is Real”
Industry analysts say 2025’s softer activity wasn’t due to lack of interest but timing and financing conditions. Deals delayed due to borrowing costs and cautious underwriting are expected to close in 2026 as debt pricing stabilises, supporting Savills’ rebound prediction.
Interpretation:
Investment slowdowns sometimes reflect market timing rather than structural disinterest. When fundamentals remain healthy, the rebound can be rapid once conditions moderate.
2) Self‑Storage Is a “Recession‑Resilient” Sector
Many real estate strategists describe self‑storage as more resilient in downturns because:
- demand comes from everyday consumers — renters, small business owners, downsizers
- lease terms are flexible
- rental income streams are recurring and less tied to economic cycles
This makes the sector attractive for core or core‑plus investors prioritising reliability over high volatility.
Interpretation:
Investors increasingly view self‑storage alongside other alternative real estate classes like logistics and healthcare properties, placing it in a more defensive allocation.
3) Supply Constraints Support Valuations
A recurring theme in analyst commentary is limited new supply of high‑quality space in major cities. Planning constraints, higher land costs, and construction inflation make new facilities challenging. When demand is steady — or growing — scarcity supports rental growth and asset valuations.
Interpretation:
Scarcity in key markets is a structural tailwind for long‑term performance, not just a short‑term pricing bump.
4) Tech & Customer‑Centric Operations Matter
Modern self‑storage operators increasingly invest in:
- digital booking and pricing platforms
- flexible contract models
- integrated access technology
- e‑commerce storage solutions
This operational sophistication makes facilities stickier to customers and more attractive to institutional buyers seeking scalable platforms.
Interpretation:
Strong operating models reduce churn and support smoother income streams — an advantage when investors compare yield options across commercial real estate.
Market Sentiment
Bullish views highlight:
- rebound reflects real demand, not speculation
- investors see self‑storage as a stable diversification tool
- prime urban assets command strong pricing
Cautious views note:
- financing cost uncertainty remains a factor
- some secondary markets may lag in activity
- macroeconomic shifts could still influence timing
Final Takeaway
The predicted rebound in self‑storage investment across the UK and Europe reflects both pent‑up deal flow and structural investor interest in assets that offer recurring income, demand resilience, and limited new supply.
Savills’ outlook suggests 2026 could be a turning point for deal activity in a sector that’s fast becoming a staple of diversified real estate portfolios.