The Self Storage Market in Bangkok: From a Niche Business to an Emerging Urban Investment Opportunity

Over the past decade, patterns of living and doing business in Bangkok have undergone significant transformation. The city has become increasingly dense, while average residential unit sizes—particularly condominiums—have steadily declined. At the same time, urban lifestyles and small businesses (SMEs) have developed a growing need for additional storage space. These structural shifts have become key drivers behind the rapid growth of the self storage business in Thailand, especially in Bangkok, where demand has expanded beyond its original niche market.

According to the Market Study on the Self Storage Market in Bangkok by Colliers Thailand, the Thai self storage market is transitioning from an “emerging market” toward a phase characterized by greater stability and investment attractiveness. Although the market remains relatively small compared with those in developed countries such as the United States, Japan, or Singapore, its long-term growth potential remains substantial, supported by fundamental changes in urban living and business behavior.

From a macroeconomic perspective, Thailand’s economy in the 2024–2025 period is expected to grow at a moderate pace of approximately 2.6–3.0% per annum. Key growth drivers include the recovery of the tourism sector, domestic consumption, and foreign direct investment, particularly in industrial manufacturing, electronics, and logistics. While Thai households continue to face pressure from rising living costs and high household debt levels, urban economic conditions increasingly support demand for self storage services. These conditions include shrinking household sizes, a higher proportion of condominium living, the expansion of small enterprises and online businesses, increased relocation for employment, residential renovations, and the temporary residence of expatriates. As a result, off-site storage space has evolved from a supplementary service into an integral component of modern urban infrastructure.

In terms of market structure, Thailand’s self storage sector remains at an early stage of development. Prior to 2017, total cumulative self storage supply stood at only around 1,300 square meters, reflecting extremely low market penetration. However, from 2018 onward, the market began to expand more visibly, with new supply entering in waves aligned with demand absorption rather than through aggressive oversupply. Total cumulative supply increased to approximately 21,390 square meters in 2021 and continued to expand to nearly 49,947 square meters by 2024. Looking ahead, total supply is forecast to reach around 56,947 square meters by 2027. Notably, no new supply is expected to enter the market in 2025, signaling a strategic shift among operators toward prioritizing operational performance and occupancy levels over rapid expansion.

On the demand side, growth has been even more pronounced, with demand consistently outpacing supply. Total leased self storage area increased from approximately 6,556 square meters in 2021 to 27,757 square meters in 2024 and is projected to rise to nearly 32,900 square meters in 2025. By 2027, demand is expected to exceed 41,000 square meters. This strong growth trajectory indicates that self storage is no longer perceived as a temporary or discretionary service, but rather as a form of spatial infrastructure supporting urban residents and small businesses alike.

Occupancy rates, a key indicator of market health, further reinforce this positive outlook. Thailand’s self storage occupancy rate increased from 30.7% in 2021 to 55.6% in 2024 and is forecast to reach approximately 65.9% in 2025, before climbing to around 72.6% by 2027. Despite the introduction of new supply between 2022 and 2024, occupancy has risen steadily each year, demonstrating that underlying demand has been strong enough to absorb new space effectively. This trend suggests that the market is entering a phase of tightening vacancy, which is favorable for revenue growth and pricing power.

Rental pricing within Bangkok’s self storage market exhibits a high degree of flexibility, varying by unit size, location, and service quality. Small units of approximately 1–3 square meters typically start at around THB 1,200 per month, while medium-sized units of 4–7 square meters average approximately THB 3,500 per month. Larger units ranging from 8–12 square meters command average rents of about THB 9,000 per month, while premium or oversized units of 13 square meters and above can reach monthly rents of THB 20,000–26,000. This tiered pricing structure allows operators to manage tenant mix effectively, catering to short-term users, long-term customers, and premium segments simultaneously.

Although the market remains relatively fragmented, several key players have emerged with increasingly distinct roles. These include i-Store Self Storage under Storage Asia PLC as a leading pure-play operator. This evolving market structure presents opportunities for consolidation, platform expansion, and service standardization in the future.

In conclusion, Bangkok’s self storage market is approaching a critical inflection point. What was once a niche business is becoming an essential component of the urban ecosystem. Demand growth that consistently outpaces supply, improving occupancy rates, and shifting consumer behavior all point to strong long-term potential. Looking ahead, operators with competitive advantages in location, operational management, and lifestyle-oriented service offerings are likely to achieve sustainable returns and play a defining role in shaping the future of Thailand’s self storage market.