Exploring SCPI investment options for 2024 reveals several top performers despite recent market fluctuations. The article highlights that SCPIs, which offer a blend of real estate exposure and manageable risk, have seen average reconstruction values decline. However, some SCPIs have maintained strong distribution rates, with notable mentions like Transitions Europe and Remake Live achieving returns above 7.5%. Overall, the landscape showcases resilient investment opportunities amid changing property values.
Exploring the Top SCPI Investment Opportunities for 2024
If you’re considering investing in real estate through a Société Civile de Placement Immobilier (SCPI) but feel overwhelmed by the choices, you’re in the right place. In this article, we’ll unveil the SCPIs that have delivered impressive returns in 2024.
Understanding the SCPI Landscape
Real estate investment companies, commonly known as SCPIs, offer a compelling avenue for those looking to delve into the real estate market. They provide the advantage of “paper stone” investments, which can yield attractive returns with a balanced level of risk. However, it’s essential to approach these investments with caution.
After the spike in real estate rates in 2023, many investors decided to delay their projects, leading to a decrease in property values. Notably, the value of SCPI shares tends to align closely (approximately 10%) with the reconstruction value of their real estate portfolios.
This means that when property prices drop, the valuation of SCPIs is also affected. This trend persisted into 2024. According to the latest SCPI Observatory report from Linxea, published last October, the average reconstruction values for SCPIs have decreased by 1.92%.
“The trends observed last year have become more pronounced this year. Other categories of SCPIs have shown relatively stable reconstruction values, with minor declines or slight increases, particularly in residential SCPIs.” Linxea also noted that share prices exhibit a premium of 1.50% over reconstruction values, “even amidst the ongoing price decreases.”
Top Performing SCPIs of 2024
In 2023, twelve SCPIs managed to maintain a distribution rate above 6%. Are these SCPIs still leading the pack in terms of performance this year? The platform MeilleureSCPI.com, dedicated to real estate savings insights, has released the anticipated returns for SCPIs in 2024. Here’s a glimpse at the SCPIs with returns exceeding 6%, with updates expected as new information becomes available.
- Transitions Europe: Launched in late 2022, Transitions Europe (Arkea Reim) boasts a remarkable return of 8.25% for 2024, up from 8.16%. This SCPI invests in a well-diversified asset portfolio, including offices, healthcare, education, and logistics.
- Remake Live: Continuing its strong performance, Remake Live offers a return of 7.88%, a slight increase from 7.79% in 2023.
- Iroko Zen: Aiming for a distribution rate between 6.75% and 7.50%, Iroko Zen exceeded expectations with a return of 7.54% for 2024, compared to 7.12% in 2023.
- Corum Eurion: Previously absent from the top performers, this ISR-labeled SCPI has surged with a return of 6.72% for the past year.
- Neo: The Novaxia Neo SCPI presents a distribution rate of 6.01% in 2024, a slight decline from 6.51% in 2023.
- Cristal Life: After a return of 6.02% in 2023, Cristal Life has enhanced its performance, achieving a distribution rate of 6.51% for 2024.
- Epsilon 360°: Managed by Epsicap, Epsilon 360° reported a distribution rate of 6.25% in 2023 and successfully reached a target of 6.55% for 2024.
- Corum Origin: This SCPI remains steady, offering a distribution rate of 6.03% in 2024, slightly down from 6.06% in the previous year.