French investors are increasingly turning to real estate investment trusts (SCPIs) as returns on traditional savings vehicles like the Livret A continue to erode, according to recent market data. The shift comes as the SCPI market shows signs of recovery, with a handful of key players, including Iroko, leading the charge.
SCPIs offer a simplified route to commercial property investment, allowing individuals to pool resources and invest in a diversified portfolio of office buildings, retail spaces, logistics facilities, and healthcare properties. The management company handles property acquisition, tenant management, maintenance, and rent collection, mitigating the risks associated with direct property ownership. Unlike a single property investment, risk is distributed across multiple tenants and geographic locations.
The French Association of Real Estate Investment Companies (ASPIM) reported a 33% increase in SCPI collections during the first nine months of 2025 compared to the same period in 2024, signaling renewed interest in this investment option. But, the recovery is uneven, with diversified SCPIs – those investing across multiple sectors and often internationally – experiencing the strongest gains.
Iroko has emerged as a prominent beneficiary of this trend. The company collected over €600 million in 2025, capturing more than 10% of the French SCPI market share, which comprises a total of 225 SCPIs. This success is attributed to a combination of factors, including consistent performance, a diversified investment strategy, and a fee structure that aligns with investor interests.
According to Iroko data from December 31, 2025, Iroko Zen, one of the company’s SCPIs, achieved an annual overall performance exceeding 7% for the fifth consecutive year. This performance is underpinned by a strategy of diversification, with Iroko Zen holding 173 properties across seven Western European countries. Iroko distinguishes itself through its fee model, primarily charging fees based on property management rather than upfront subscription costs, which allows a greater proportion of investor capital to be allocated to real estate.
The resurgence of SCPIs is directly linked to the declining returns offered by the Livret A, a traditionally popular French savings account. The Livret A’s interest rate has remained at 0.5% since February 2020, failing to keep pace with inflation and resulting in a negative real return for savers. This has prompted many French citizens to seek alternative investment options that offer the potential for higher yields.
Experts emphasize the importance of a long-term investment horizon and careful selection of SCPI managers. While past performance is not indicative of future results, it provides a valuable indicator of a SCPI’s reliability. A controlled and consistent collection of funds allows SCPIs to capitalize on market opportunities and effectively manage investor withdrawal requests.
Investing in SCPIs carries inherent risks, including potential capital loss and limited liquidity. Rental income is not guaranteed and depends on tenants fulfilling their lease obligations. Investors are advised to carefully review the SCPI’s information documents and key investor information documents before making any investment decisions. Iroko Zen’s SCPI visa number is 20-17, dated October 9, 2020.
