French real estate investment vehicles, known as SCPIs, are increasingly investing outside their home market, with the UK one of the key targets, according to new research from Savills.

SCPI funds allocated nearly €2.3bn (£1.9bn) across Europe, excluding France, last year. The UK was the main target destination, followed by Spain, the Netherlands, Italy, Germany, Ireland and Poland.

With inflows on the rise again, Savills said it expected that a new wave of capital from this investor group would target the continent’s real estate markets, including the UK.

By Q1 2025, domestic investment represented around 20% of SCPI acquisitions, in contrast to the situation in 2015 when cross-border investment accounted for slightly less than 20% of total capital deployed.

Net SCPIs’ capital inflows are also on the increase again, rising from €800m (£680m) in Q1 2024 to €1bn (£855m) in Q1 2025, ASPIM-IEIF data reveals.

Emma Steele, director of global cross-border investment at Savills, said: “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.”

According to Lydia Brissy, director of European research at Savills, French SCPIs benefit from a unique competitive edge thanks to their structure and investor base.

She adds: “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.”