French SCPI funds are increasingly investing outside their home market with the key beneficiaries being other European countries, including the UK, according to new data from Savills.
Last year, SCPI funds allocated nearly €2.3bn across Europe (excluding France) of which the UK, followed by Spain, the Netherlands, Italy, Germany, Ireland and Poland were the main destinations.
So far in 2025, Italy is leading the UK as a target destination for these funds and with net SCPIs’ capital inflows rising from €0.8bn in Q1 2024 to €1bn in Q1 2025, according to ASPIM-IEIF data, Savills expects a new wave of capital from this investor group will target European real estate markets, including the UK.
Lydia Brissy, director European research at Savills, said: “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, added: “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, said: “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.”
