the new deal in rental investment

In a market constrained by inflation, stricter standards and less easy credit, adaptation is the rule. Focusing on student housing, taking an interest in older buildings, taking advantage of SCPI or crowdfunding opportunities… Stone remains a highly valued and profitable option. Our tips to make the most of it.

With an average forecast of more than 5% in France in 2022 according to INSEE forecasts, and expected peaks of more than 7% in September, its safe haven dimension among savers will once again become more expensive. To build wealth and receive additional income in retirement, thousands of French people seek to buy homes to rent, in old, new or serviced residences, or even in shares of SCPI (civil real estate investment companies). ), or rely on real estate crowdfunding.

In recent years, rental investment has been driven by exceptional credit conditions, with interest rates on the ground, which make projects financeable even without personal contribution. Not to mention the tax benefits granted, under certain conditions: the Pinel device in new buildings, devices, and in the old one, the Censi-Bouvard for managed real estate. Final advantage: the rents are indexed to inflation, which protects the income of the owners.

With long-term high annual returns, real estate investment can absorb current inflation.  Reassuring performance.

With long-term high annual returns, real estate investment can absorb current inflation. Reassuring performance.

Market under pressure

And yet. In recent months, the rules of the game have changed. If the rental investment continues to be attractive, the owners must more than ever be attentive to all its parameters to continue benefiting from returns that sometimes exceed 10%. This is the case of a niche investment, real estate crowdfunding, which allows funds to be lent to developers, with an average return of 8% to 9%. But rising material and energy costs, longer lead times and recruiting challenges are likely to slow program launches.

As for SCPI, yields have fallen back to around 4%. A correct level, but it does not fully compensate for inflation. Offices and shops, shaken by the coronavirus pandemic, continue to adapt to changing business demand, while managers develop in other sectors: logistics, electronics.[…]


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