Market Overview

According to IMARC Group’s latest research, the Australia self-storage market reached a value of USD 1,202.0 million in 2024 and is projected to expand to USD 1,848.8 million by 2033, reflecting a compound annual growth rate (CAGR) of 4.90% during 2025–2033. This growth reflects structural changes in urban housing, evolving consumer lifestyles, and the expansion of both personal and business storage needs.

The report highlights that the market is shaped by key factors such as rising urban density, the growth of e-commerce, flexible work practices, and increased investor confidence. With over 2,500 facilities already operating across the country and hundreds more in the pipeline, self-storage is one of Australia’s most rapidly evolving real estate sectors.

How AI and Smart Technology Are Transforming Self-Storage

The introduction of AI and digital technology has revolutionized the self-storage industry. Smart access solutions, including app-based entry systems, biometric locks, and remote monitoring, are making storage more secure and customer-friendly. Automated kiosks now allow 24/7 check-ins, while mobile applications streamline reservations, billing, and unit management.

AI-driven tools also enhance operations by forecasting demand, enabling dynamic pricing models, and helping facility managers optimize space utilization. Virtual assistants and chatbots are increasingly handling customer inquiries, reducing response times and operating costs. Together, these innovations improve efficiency and elevate the customer experience, positioning the industry for long-term growth.

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Key Trends in the Australia Self-Storage Market

1. Urbanization and Downsizing

Australia’s growing urban population is leading to smaller living spaces, which in turn drives the demand for external storage. Downsizing households, apartment living, and increased tenancy turnover are key factors supporting storage demand in major cities like Sydney, Melbourne, and Brisbane.

2. E-commerce and Small Business Demand

As online retail continues to expand, many small businesses and entrepreneurs require affordable and flexible storage solutions for inventory, packaging, and distribution. This trend has created strong demand for medium-sized units that cater to small business operations without the need for large warehouses.

3. Lifestyle Shifts and Aging Population

Australia’s aging population is also contributing to demand growth, as many older individuals downsize their homes but still require secure storage for personal possessions, heirlooms, or seasonal items. Lifestyle transitions such as relocation, divorce, and temporary international moves further boost demand.

4. Facility Expansion and Development Pipelines

The industry has seen significant expansion, with over 2,500 facilities now operating nationwide. New South Wales alone is expected to see over 60 new facilities open in 2025, with more than 160 in the broader pipeline. This translates into more than 1.3 million square meters of additional rentable storage space over the next decade.

5. Sustainability and Green Practices

Environmental sustainability has become a priority for operators and investors alike. Facilities are increasingly designed with energy-efficient lighting, solar panels, and water-saving technologies. Developers are also exploring the use of recycled materials and eco-friendly construction methods to align with consumer expectations for green operations.

Growth Factors Driving the Market

The Australia self-storage industry is benefitting from several overlapping growth drivers. Rising urban density and limited living space remain the most important, particularly in metropolitan areas where housing affordability pushes people toward smaller homes.

At the same time, e-commerce and flexible work arrangements are encouraging entrepreneurs and home-based businesses to rely on storage facilities as cost-effective solutions for inventory management. Investor interest in the sector is strong, driven by consistent occupancy rates averaging around 87% nationwide. This reliability makes self-storage an attractive alternative asset class.

Technology is another growth catalyst. By adopting automation, AI-driven pricing, and digital-first customer engagement, operators are not only improving efficiency but also differentiating themselves in a competitive market. These advancements attract tech-savvy customers who prefer seamless, digital-first experiences.

Leading Companies and Market Activity

Several major companies dominate the Australia self-storage landscape, alongside smaller operators and new entrants.

• National Storage REIT (NSR) is one of the largest providers in the market, continuing to expand through acquisitions such as a USD 32 million deal with MAAS Group in 2024.

• StorHub, backed by private equity giant Warburg Pincus, has expanded aggressively in Sydney, investing more than USD 70 million in facility acquisitions.

• Storage Investments Australia (SIA) raised AUD 40 million in 2024 to fund the development of new facilities, with the long-term goal of building a billion-dollar portfolio.

• Abacus Storage King (ASK) operates more than 120 facilities nationwide, maintaining a strong market share and recently attracting a takeover offer worth billions.

• Kennards Self Storage, a well-established family-run business, continues to grow steadily, with more than 100 sites across Australia and New Zealand.

Together, these companies highlight the increasing consolidation of the industry, where well-capitalized players are leveraging scale, brand recognition, and technological investment to capture market share.

Market Segmentation

The self-storage market in Australia can be segmented by unit size, end-use, and region.

• By Unit Size: Small, medium, and large storage units are offered, with medium-sized units being the most popular among both individuals and small businesses.

• By End Use: Personal storage dominates the market, although business usage is steadily rising as e-commerce expands.

• By Region: Growth is strongest in ACT & New South Wales, Victoria & Tasmania, and Queensland, while demand is also emerging in suburban and regional areas due to land availability and lower construction costs.

Read Australia Self Storage Market Report

Regional Insights

Eastern states remain the hub of storage activity, particularly Sydney and Melbourne, where population density and housing shortages drive demand. Queensland also plays a significant role, with Brisbane and the Gold Coast experiencing steady growth. Regional expansion is increasingly viable as operators look to capture demand in suburban growth corridors and secondary cities, where development costs are lower but customer needs remain high.

Recent Developments

The last two years have seen major deals and investments reshape the market. In 2024, National Storage REIT and StorHub made significant acquisitions, while Storage Investments Australia raised funds to pursue large-scale development projects. Abacus Storage King strengthened its dominance with more than 120 facilities, while Kennards continued expanding its established network.

Looking ahead, more than 200 new facilities are expected across the country, led by New South Wales and Victoria. This expansion is supported by investor demand, robust occupancy levels, and a strong pipeline of new projects.

Conclusion

The Australia self-storage market is set for sustained growth over the next decade, with demand fueled by urbanization, e-commerce, and shifting lifestyle patterns. Technology adoption and sustainable development are adding new dimensions to the industry, while large operators and investors continue to expand capacity and consolidate market share. By 2033, with nearly USD 1.9 billion in value, self-storage will remain a key pillar of Australia’s commercial real estate landscape.