What is paper real estate (pierre-papier)?
Paper real estate (pierre-papier) refers to all investment vehicles that provide access to real estate indirectly, through shares or units, without purchasing a property outright. This term primarily covers three types of products: SCPI, OPCI and SCI (within life insurance).
With total inflows exceeding 10 billion euros in 2025, paper real estate has established itself as a pillar of the French wealth allocation strategy. Each vehicle has distinct characteristics that suit different investor profiles and objectives.
SCPI: the cornerstone of paper real estate
Societes Civiles de Placement Immobilier (SCPI) are the oldest and best-known paper real estate vehicle. They directly hold physical property portfolios and distribute rents received as quarterly dividends.
Key characteristics:
- Returns: average distribution rate of 4.52% in 2025
- Entry fees: between 8 and 12% of the amount invested
- Liquidity: limited, resale takes a few weeks to a few months
- Minimum investment: generally 1 000 to 5 000 euros
- Recommended holding period: 8 to 10 years minimum
SCPI are ideal for investors seeking regular income and direct exposure to commercial real estate. They offer the best visibility over the portfolio held and past performance.
For an investment of 50 000 euros in a SCPI yielding 4.8%, gross annual income is 2 400 euros, i.e. 200 euros per month.
OPCI: the real estate-financial hybrid
Organismes de Placement Collectif Immobilier (OPCI) are hybrid funds combining real estate and financial assets. They must comply with precise allocation constraints:
- 60 to 65% minimum in real estate assets (buildings, property company shares)
- 5 to 10% minimum in liquid assets (cash)
- The balance in financial assets (equities, bonds)
Key characteristics:
- Returns: variable, averaging 2 to 4% per year (total performance including capital appreciation)
- Entry fees: between 2 and 5%, lower than SCPI
- Liquidity: better than SCPI thanks to the liquid financial pocket
- Minimum investment: often accessible from 100 euros in life insurance
- Volatility: higher than SCPI due to the financial component
OPCI suit investors who seek real estate exposure with improved liquidity and accept higher volatility. The financial component can amplify performance in rising markets but also magnify declines.
An investment of 30 000 euros in an OPCI showing an overall return of 3.5% generates annual performance of 1 050 euros, but this performance is less predictable than with a SCPI.
SCI in life insurance: flexibility
Societes Civiles Immobilieres (SCI) dedicated to life insurance are specialised unit-linked funds that invest in real estate. They stand out for their flexibility:
- Real estate pocket: 50 to 80% in direct real estate, SCPI, OPCI
- Financial pocket: 20 to 50% in bonds, diversified funds
Key characteristics:
- Returns: between 2 and 4.5% depending on the year and SCI
- Entry fees: often 0 to 2%, the lowest in the category
- Liquidity: excellent within the life insurance wrapper (withdrawal within a few days)
- Minimum investment: very accessible, sometimes from 50 euros
- Taxation: that of life insurance, particularly advantageous after 8 years
SCI in life insurance are the ideal vehicle for investors who prioritise liquidity and optimised taxation. They often serve as a gateway to real estate for smaller budgets.
Summary comparison table
In terms of returns, SCPI lead with 4 to 6%, followed by SCI (2 to 4.5%) and OPCI (2 to 4%). For liquidity, SCI in life insurance are the most flexible, followed by OPCI, then SCPI. Regarding entry fees, SCI are the most economical (0 to 2%), ahead of OPCI (2 to 5%) and SCPI (8 to 12%). Volatility is lowest for SCPI, intermediate for SCI and highest for OPCI.
How to combine these vehicles?
A diversified paper real estate allocation could be structured as follows for a portfolio of 100 000 euros:
- 60% in SCPI (60 000 euros): for returns and stability. Estimated income: 2 880 euros/year
- 25% in SCI via life insurance (25 000 euros): for liquidity and tax efficiency. Estimated income: 875 euros/year
- 15% in OPCI (15 000 euros): for diversification and liquidity. Estimated income: 525 euros/year
Total estimated income: 4 280 euros/year, i.e. a weighted average return of 4.28% with a good balance between returns, liquidity and diversification.
2026 trends in the paper real estate market
The paper real estate market continues to expand with several structuring trends: the rise of European SCPI with optimised taxation, the development of thematic SCI (SRI, healthcare, residential) in life insurance, and sector consolidation through mergers between asset management companies. Investors are increasingly attentive to ESG criteria and the environmental quality of portfolios held by these vehicles.