Investing in performance SCPIs in 2017: the advantages and limits

The success of real estate is no secret to anyone. This sector excels in investment. But faced with uncertain financial markets and a weakening economic situation, the choice to invest in this area is not always obvious. Exceptionally when it comes to investing directly where the risks are greater. Conversely, indirect real estate, despite its limitations, seems to hold its own in such situations. This is particularly the case of SCPIs which serve net yields of more than 4% and appear as an effective alternative to life insurance, the livret A or the CODEVI. Focus on performance SCPIs.

Yield SCPIs are aimed at private investors wishing to build up assets capable of generating regular and sustainable additional income. Investing in a class of diversified and rigorously selected real estate assets through a qualified management company, they adopt an attractive strategy which has earned them unique performances on the market.

In this regard precisely, the year 2016 reported a satisfactory assessment for SCPIs. These savings products hold the collection record of 5.56 billion euros over the past year and maintain a very significant rate of return (4.63%). Total outstandings recorded over the same period amounted to 43.52 billion euros (+15.1% compared to 2015). These figures testify to the efficiency and performance of these investment vehicles despite the economic and real estate conditions of the past two years. What should normally appear to be a period of recession for physical real estate was therefore not so for yield SCPIs, which continued to turn around in 2017.

Investing in performance SCPIs in 2017: the advantages and limits

If the year 2016 marked the rise of SCPIs, the trend continued in 2017. Just by noting their capitalization at the end of the 1st quarter of 2017 (40 billion euros) and their net inflow (2.3 billion euros). euros in just three months), their growth is undeniable. In addition, the income distributed remains completely proportional. In a climate of political and economic uncertainty, yield SCPIs are therefore a profitable and secure investment.

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In a sense, the increase in fundraising is an attractive criterion. But in the other direction, it can prove penalizing insofar as the products are badly marketed. A situation which is however in the process of materializing in the face of a regression of offers. In order to retain the interest of savers, yield SCPIs must make a quality selection as consideration for their investment efforts. In the absence of quality and quantity, management companies are forced to place them in other investment vehicles such as financial products.