Investing in SCPIs: a step-by-step guide

SCPIs: understanding this real estate investment

An SCPI (Société Civile de Placement Immobilier) allows investors to access real estate assets — office buildings, retail spaces, residential properties, logistics and tertiary assets — through a regulated management company. This company handles all operational aspects, including acquisitions, rental management, maintenance, arbitrage and income distribution.

SCPIs are particularly attractive for investors who wish to:

• diversify their real estate portfolio,

• gain access to premium assets located in Paris or major international cities,

• receive regular income without managing properties directly.

Average returns typically range between 3% and 8%, depending on the SCPI’s strategy and market conditions. Investors can choose between:

• tax-efficient SCPIs, linked to schemes such as Pinel, Malraux or deficit foncier,

• income-focused SCPIs, designed to generate regular rental income.

The entry ticket remains relatively accessible, usually between €1,000 and €10,000, with the possibility of investing either in cash or using bank leverage, which can enhance overall performance.

SCPIs: what risks should investors consider?

As with any real estate investment, SCPIs involve risks that must be carefully assessed. Diversification is a key factor in managing risk effectively.

Investors should pay particular attention to:

• the type of assets held (office, retail, residential, high-end properties, logistics),

• their geographical location, particularly in economically dynamic areas in Paris, other major French cities or abroad,

• the quality and financial strength of tenants, as well as lease terms.

Investing in SCPIs heavily exposed to weak markets or fragile tenants can negatively impact returns. To mitigate such risks, investors are advised to review:

• the quarterly reports published by the management company,

• the annual management report, which provides insight into financial reserves, upcoming works and long-term strategy.

Taxation is another essential aspect. Income generated by SCPIs is classified as rental income and taxed according to the investor’s marginal tax rate, in addition to social contributions.
However, when SCPIs are purchased using bank financing, investors may deduct financial charges (loan interest, insurance premiums, banking fees), improving the overall tax efficiency of the investment.