Switzerland Self-Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Switzerland Self-Storage Market Analysis

The Switzerland self-storage market is expected to grow at 3.7% CAGR during the forecast period. The requirement for more space for belongings depends on several changes in a person’s lifestyle, like moving home, getting married, and retiring. With the increased urbanization and apartments in major Swiss cities gradually getting smaller and more expensive, many people in the country are finding they are running out of the room. Self-storage solutions have stepped in to cater to this rising consumer need, and as provision steadily grows, it appeals to investors.

• In an increasingly challenging and crowded real estate market, the investors may see the uneven development of the self-storage industry in Switzerland as an opportunity with high potential. In a significant population of Switzerland, self-storage is being called a solid, recession-proof investment. In some cities, with income growth in mind, self-storages are even being higher adoption levels that almost match more traditional asset classes.
• As the GDP per capita of Switzerland has increased in the last financial year, i.e., 2019, which defines a strong potential of the country’s self-storage market. For instance, according to OECD, in 2019, the GDP per capita has observed significant growth of 2.3% compared to the previous fiscal year.
• Though a considerable number of conventional self-storage facilities are based upon adapted premises of different use, this is changing as vendors become more sophisticated. Such an approach is expected to be essential and appealing to institutional investors looking for long-term, resilient income streams in the country.
• In the coming years, the self-storage industry in Switzerland is expected to benefit from the accurate cloud solutions that give operators of all sizes the tools they need to view the renter activity, remote access accounting, and payment data. These cloud solutions also help in inventory management, update software/firmware, see onsite device health, troubleshoot remotely, and even use predictive analytics to keep and upsell customers.
• Swiss government responded to the COVID-19 pandemic by putting significant restrictions on their societies and economies in March, which prompted a significant decline in global trade and in demand for Swiss exports. The Swiss State Secretariat for Economic Affairs (SECO) forecasts that manufacturing output will fall by approximately 25% of total economic added value compared to the previous financial year. If Switzerland moves into a V-shaped recession, the GDP of the country will decline by 7% in 2020. Also, the rate of unemployment will increase to 4% from 2.3% in 2019 as a result of the recession. As the enterprises are observing a loss due to the economic downturn, it will severely affect the country’s self-storage market.

Switzerland Self-Storage Industry Segments

The self-storage solutions offer value to continue protection from environmental damage and theft by providing cost-effective storage solutions. The study scope of the Switzerland self-storage market tracks down the adoption of different self-storage solutions used by business customers and domestic consumers. The study also focuses on the impact of COVID-19 on the market ecosystem. In the study scope, the existing storage provider landscape also covered, which consists of major players operating in the market.

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Switzerland Self-Storage Market Trends

This section covers the major market trends shaping the Switzerland Self-Storage Market according to our research experts:

Increased Urbanization, Coupled with Smaller Living Spaces is Expected to Drive the Self-Storage Demand in the Coming Years

• According to Worldbank data, Switzerland has an average urban population of 74% in 2019. Urbanization and urban sprawl are key land-use processes in most of the world’s potential economies, including Switzerland, where urban and settlement areas increased by more than 20% between 1984 and 2019 (SFSO, Swiss Federal Statistical Office). Growing urban populations mean smaller and increasingly expensive living spaces in cities and the creation of more renters who move around more frequently.
• The development of smart cities is central to the United Nations’ Sustainable Development Goals (SDGs). Under SDG 11, the United Nations calls explicitly for additional urban investments through 2030 to make cities more inclusive, safe, resilient, and sustainable. These investments are expected to impact market growth over the forecast period positively.
• The average occupancy across European countries saw a 1% increase from 78% in 2018 to 79% in 2019. New facilities tend to have lesser occupancy rates as they typically take 3 to 5 years to reach maturity. Switzerland, for example, has a significant number of newer facilities, with the mean average age around five years.
• Optimal occupancy for a well-built self-storage facility located in a metropolitan area is usually considered between 85%-90%. This allows the vendors to continue to offer space to customers and increase the yield for the business.

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