The year 2019 is, probably, a extraordinary year in many ways for SPCI.
As for the collection, it is estimated at 8.1 billion euros, according to the France platform SCPI. Before this feat, the record was a collection of 6.3 billion euros in 2017.
Furthermore, the yield is also in full expansion, after a long period of decline. In 2019, yield SCPIs returned an average of 4.51%. Thus, the year 2019 attests to the increase of yield for the second year in a row.
According to the co-founder of the France SCPI platform, Paul Bourdois, SCPI returns have never been lower than 4% and never higher than 8% for 30 years. There regularity in the yield is the main reason for success. Beyond the French appreciation of real estate and the quality of the product, the success of SCPIs has been propelled by the following 3 elements: Booklets – Euro Funds – Shares:
- The yields of the booklets are quite low and barely exceed inflation. Moreover, Minister Bruno Le Maire announced an upcoming drop of yield of booklet A, at 0.5%. This new provision will be effective next February.
- The yields of euro funds are terrible, despite a strong investment by savers for their retirements. The arbitrage of these euro funds is recommended by the insurers themselves.
- As for the market of the actions, 2019 saw a good performance, with +26.37 for the CAC40. However, this market is still random for savers who are in quest of stability and still have the years at -40% in their memory. This collection is also favored by low borrowing rates.
These influence greatly collection, because debt is, entirely, possible for procurement of the shares of SCPI. Despite questions about the overheated of the collect SCPIs because of debt, the platform ensures that less than 40% of operations are made from the loan. And it is quite likely that l’arbitrage of several households in the Fund deteriorates this share.
