Market Trends of Germany Self-Storage Industry
Rising Urbanization and Smaller Living Spaces Drive the Market
- Germany offers numerous growth opportunities, as large urban areas with high population densities provide lucrative opportunities for the self-storage market to grow due to a lack of space. Furthermore, rising urbanization and shrinking living space are the primary driving forces behind the German self-storage market's expansion. Growing urbanization raises the demand for space, causing property prices per square meter to rise. As a result, these factors are fueling market growth.
- Central cities in Germany with a higher population are witnessing a rise in the popularity of these storage facilities because of the strained housing demand caused by excess need and the uneven range of rents. Factors such as these are expected to increase the demand for self-storage in the region during the forecast period.
- According to UN DESA, in 2015, approximately 77.2 percent of the total population in Germany lived in urban areas, and it was expected that the corresponding figure in 2050 will be 84.3 percent.
- As people move to cities, they have less space for all their possessions. Downsizing to smaller homes in any location also plays a large role in the storage market. Decreasing rural opportunities due to the consolidation of operations is forcing the population to have more condensed population densities in cities where the studied market solves a primary problem of space allocation. Self-storage offers a cost-effective and convenient way of freeing up space at home by storing items that one does not have space for.
- Hence, increased urbanization and rising house prices mean that living spaces are getting smaller and smaller. This has presented the self-storage vendors in the region with a lucrative opportunity to build such spaces that allow them to store their belongings safely and securely at a cheap price.
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Business User Type to Hold Significant Market Share
- Businesses have gradually witnessed the value of self-storage facilities, although they were initially designed for personal storage. Renting a self-storage facility is ideal as a cost-effective, long- or short-term solution to space management problems.
- The organization and efficiency of a corporation may suffer from crowded offices. There is less space to move around, and it is easy for crucial objects to get misplaced because of the disorder. Businesses may get rid of inventory, documents, equipment, and other items not required for regular business operations by renting a storage facility.
- Several companies are increasingly looking forward to investing in self-storage facilities to maintain their inventory because vendors in the market provide insurance services and advanced surveillance, including video, to preserve the items stored. Market vendors are designing their building sites close to small enterprises and following their needs, such as climate-controlled units in various sizes, etc.
- However, in the past, small businesses opted to store materials in their garage. This may be possible, but the location can be unsafe and not environmentally sound enough to prolong the life of the merchandise. Renting a storage space assures the security of the items, as most facilities have safety protocols and an agreement with customers regarding the loss of items.
- Also, the number of commercial renters, already one-fifth of the tenant base, may grow as small businesses consider alternatives to traditional warehouse space. The smaller space options, more affordable costs, and shorter lease terms often favor smaller companies, according to the warehousing and storage in Germany from 2012 to 2019, with a forecast to 2025. It is projected that the revenue from warehousing and storage in Germany will amount to approximately USD 12.32 billion by 2025.
