As 2022 approaches, their purchasing power is one of the major concerns of the French. The health crisis, the rising costs of energy and everyday consumer products are increasingly affecting their standard of living.
In the face of this inflation, whose impact is beginning to panic financial markets, households are worried about their savings being eaten a little more every month. Investing in SCPIs is a simple way to protect your savings and increase your wealth.
In this article, we are about to give you five good reasons why you should adapt your investments to the inflationary context and invest in SCPIs.
1. SCPIs have resisted during the pandemic
The French have continued to save massively since 2020, even if interest rates remain very low. In view of the results announced by the French Association of Real Estate Investment Companies (ASPIM) and the Institute of Real Estate and Land Savings (EIEF), the 2021 balance sheet looks good for ‘stone paper’ investments. A 4.3% return is expected for the end of December, up from 4.18% in 2020.
Similarly, the amounts invested in SCPIs this year are up compared to the previous year. These facts confirm the SCPI as one of the French people’s favorite investments.
2. SCPIs meet investors' expectations
For some time now, management companies have been offering SCPIs in increasingly popular areas. Indeed, SCPIs are becoming more and more diverse, not only in terms of type or location, but also in terms of thematic areas.
Thus, SCPIs specializing in logistics, healthcare or ecology have brought a new dynamic in unlisted real estate investments.
The area that attracted savers most in the first quarter of 2021 is healthcare. The pandemic must have driven many investors to start acquiring SCPIs corresponding to their expectations in terms of health and well-being.
Among them, two SCPIs performed remarkably well during that first quarter, namely Pierval Santé and Primovie. They collect more than €200 million every trimester and are therefore on an annual rate of €800 million each.
Collections from SCPIs specializing in logistics have doubled, their average return rate reaching 5.35% in the third quarter of 2021. The health crisis has caused the closing down of professional buildings, offices, stores, hotels, etc., driving investors to carry their investments over to logistics SCPIs, mainly composed of warehouses. The young SCPI Activimmo, launched in 2019, exemplifies such enthusiasm for this promising market.
The green sector has also stood out, notably with the creation in 2020 of the Socially Responsible Investment (ISR Immo) label. The strategy of these socially responsible SCPIs is oriented towards ethical and sustainable investments.
They attract investors who consider the preservation of our planet as a priority, and offer them products that meet environmental, social and governance (ESG) criteria. Those products may include bicycle rooms or recycling areas, but they can also improve face-to-face work by focusing on comfort, or by facilitating teleworking, etc.
Only nine SCPIs have already obtained the SRI label. They represent about 10% of the SCPI market capitalization, with an average return rate of 4.92% over the same period. Among them are Primopierre, LF Grand Paris Patrimoine and PFO2. Other SCPIs have an ESG approach but are not yet SRI-labelled; this is the case, for example, of Kyanéos Pierre.
The residential market
SCPIs focusing on residential real estate are still considered a safe haven and remain an attractive investment. The launch of two new residential SCPIs, Grand Paris Residential and Allianz Home, shows the investors’ interest in this type of real estate.
3. The arrival of new European SCPIs is boosting returns
2021 has seen the emergence of European SCPIs. These are SCPIs under French law and whose assets are located partially or totally in the euro zone, sometimes in Poland and the United Kingdom.
This strategy of geographical diversification is a logical extension of the diversification of assets acquired and arouses a strong enthusiasm from investors. Indeed, in 2020, more than 30% of SCPI investments were made in European SCPIs.
Diversification was a particularly successful choice for Corum Eurion: launched at the beginning of 2020 in a disrupted economic context, Corum Eurion posted a 10.40% return for its first year, a much better result than the average SCPI return (4.18% last year). In addition, taxation on European SCPIs is more favorable to French investors and optimizes profitability.
European SCPIs launched in 2021 are promising and deserve the attention of investors; they are numerous and, among them, Sodify Europ Invest, Cristal life or Cœur d’Europe are standing out.
4. There are SCPIs for each investor profile
Investors have different objectives:
- obtain regular additional income thanks to the rents they receive
- prepare for retirement
- prepare for transmission
- benefit from a tax cut by using tax exemption schemes
- increase the value of shares acquired over the long term
Depending on your expectations, you will choose a return SCPI, a tax exemption SCPI, or a valuation SCPI.
5. SCPI: the 2022 star investment
Determining and communicating on SCPIs financial performances will evolve from January 1, 2022. The aim is to clarify the current rules and unify the system, especially for international SCPIs.
With these new measures, wealth management consultants agree to favor investments in real estate through the purchase of SCPI shares. By offering the best balance between return and risk and with payout rates between 4 and 8%, SCPIs will be the stars of investments in 2022.