Switzerland Self-Storage Market Size

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.