According to Savills latest research, French SCPIs* are increasingly investing outside their home market, with other European countries the key beneficiaries. With inflows on the rise again, the international real estate advisor expects that a new wave of capital from this investor group will target the continent’s real estate markets, including the UK.
By Q1 2025, domestic investment represented circa 20% of SCPI acquisitions, the opposite of the situation in 2015, when cross border investment accounted for slightly less than 20% of total capital deployed. Last year, SCPI funds allocated nearly €2.3 billion across Europe (excluding France) of which the UK, followed by Spain, the Netherlands, Italy, Germany, Ireland and Poland were the main target destinations for this investor group. So far in 2025, Italy is leading the UK, says the international real estate advisor.
According to ASPIM-IEIF data, net SCPIs’ capital inflows are also on the increase again, rising from €0.8 billion in Q1 2024 to €1 billion in Q1 2025.
Lydia Brissy, Director European Research at Savills, says: “French SCPIs benefit from a unique competitive edge thanks to their structure and investor base. Unlike many institutional investors, they do not rely heavily on debt financing. Their agility stems from consistent fundraising through a broad base of retail investors in France, who can subscribe on a monthly or quarterly basis. This steady flow of capital allows SCPIs to remain active in the market, even during periods of uncertainty, without needing to depend on bank loans or navigate volatile credit conditions.”
Emma Steele, Director, Global Cross Border Investment at Savills, comments: “In Q1 2025, the UK was the destination of choice for approximately a third of SCPI capital, an improvement on 2024 when it captured just under a quarter. Moving forward this year we expect the UK to continue being a key beneficiary of SCPI investors’ expansion strategies, in particular given the liquidity of the market, the ease of trade and the relative attractive yields on offer.”
James Burke, Director, Global Cross Border Investment at Savills, adds: “We are also seeing a strategic push by this investor group into Central and Eastern Europe, where risk-adjusted returns have become increasingly attractive, with Poland being the principal beneficiary to date. Simultaneously, SCPIs have moved beyond their traditional focus on offices, diversifying into healthcare and the living sector, particularly where living assets benefit from secure income such as leased purpose-built student accommodation and hotels.”
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*SCPI = Société Civile de Placement Immobilier, real estate investment vehicles that enable individuals to invest in a professionally managed property portfolio