Investing in 2026: REITs, Still a Winning Strategy?

Faced with the growing complexity of financial markets and the uncertainty marking the global economy, many savers are seeking safe and high-performing investments for 2025. Real Estate Investment Companies (REITs) continue to attract significant interest. This collective investment vehicle in real estate paper appeals because of its ability to offer stable returns, oriented towards the long term, while delegating asset management. However, recent real estate market conditions have shaken some certainties. How to understand the dynamics of REITs in this new year? How relevant is this choice in a context marked by falling prices and a variety of categories with divergent performances?

Within life insurance contracts or retirement savings plans (PER), REITs remain a favored asset, alongside OPCIs or SCIs. With several billion euros invested in 2024, they continue to attract investors due to their ease of access and attractive yields, which surpass those of traditional euro funds. Diversity of assets, rigorous management, rental performance, costs to amortize: all essential elements for adopting a winning strategy and limiting risks. Major players such as La Française, Amundi, Swiss Life, or BNP Paribas REIM are increasing their presence, demonstrating continued confidence even in the face of slight corrections.

This in-depth analysis will help you better understand the trends of REITs in 2025, their strengths, weaknesses, and especially how to wisely select the best opportunities to optimize your land savings and build a solid estate, while avoiding pitfalls on the path of indirect real estate investment.

REITs performance in 2024: a key indicator to understanding 2025

Data published by the French Society of Real Estate Investment Companies (Aspim) shows an average yield of 4.72% for REITs in 2024. Although seemingly modest, this is set against a background of contrasting share price evolution and a specific economic dynamic. By comparison, euro funds, traditional principal-guaranteed investments, delivered approximately 2.60% net of fees, confirming the appeal of land savings via REITs.

This performance results from a diverse distribution across market segments:

• Diversified REITs: an average yield up to 5.8% in 2024, thanks to their ability to seize opportunities across various attractive sectors.
• Health and education REITs: around 4.0% distribution rate, but with a decline in share prices due to specific challenges.
• Office REITs: the most impacted sector, with share prices dropping by nearly -7.1%, causing overall performance in this segment to decrease.

Investors should keep in mind that the increase in average yield is partly explained by a nearly -5% decrease in subscription prices of shares in 2023. This phenomenon reduces risk for new acquisitions but also poses a challenge for long-standing holders, such as La Française or AEW Ciloger. In any case, it’s crucial to assess the quality of the assets owned by the REIT before investing.

REIT Category 🏢	Average 2024 Yield 📈	Price variation of shares in 2023 📉
Diversified	5.8%	+0.1%
Health and education	4.0%	-4.7%
Offices	approximately 3.5%	-7.1%
Commerce	4.2%	-0.4%

Among well-known REITs that have recently experienced declines, such as Génépierre, Edissimmo, or Rivoli Avenir Patrimoine (Amundi Immobilier), exemplary management appears as a leverage to mitigate these shocks and revitalize the portfolio in 2025. The trust established with recognized managers remains a key factor for sustainable investment [source].

Which categories of REITs to prioritize in 2025 for assured profitability?

In 2025, prudent savers seek to optimize their investments in REITs that demonstrate adaptability and effective diversification. The current trend particularly favors:

• Younger and diversified REITs: they benefit from lower property values, which mechanically increases their rental yield and revaluation potential.
• Specialized REITs in promising sectors such as logistics, health, and education, which remain relatively stable despite fluctuations in the overall market.
• REITs invested abroad, via vehicles that grant access to dynamic real estate markets, more resilient to French market fluctuations.

These implicit choices aim to counterbalance the risks associated with more fragile sectors, such as certain office or retail segments subject to more volatile economic cycles. Diversification also requires a careful analysis of the size and distribution of assets:

• Favor portfolios composed of many properties with reasonable entry tickets (ideally below 10 million euros) to limit concentration risk.
• Examine the occupancy rate (TOF) and the location of properties, as these parameters ensure revenue sustainability.
• Consider the quality of tenants and their longevity to avoid overly long vacancy periods.

Selection Criteria for REITs 🔍	Description	Example of Management Company ✨
Age of the REIT	Prefer young REITs to benefit from more attractive current prices	Patrimoine Pierre, Voisin
Type of assets	Diversification of assets to limit sector risks	Swiss Life, AEW Ciloger
Investment capacity	REITs capable of continuing to invest with advantageous property values	Amundi, BNP Paribas REIM

It is important to have a clear view of the recent history of the REIT and to regularly consult updated analyses (notably on scpi.org) to anticipate fluctuations. Caution is also advised if you’re considering investing in REITs that significantly built their portfolio during the 2012-2021 period [source].

The importance of the holding period in REIT profitability

The holding period is an often overlooked but crucial aspect in evaluating the profitability of REITs. It corresponds to the time between subscribing to shares and receiving the first dividends. This period generally varies from 3 to 9 months, depending on each company’s policy.

Here’s why this parameter matters:

• Impact on liquidity: during this period, your capital is invested but generates no income, which can influence your cash flow, especially if you rely on these revenues to finance other projects.
• Effect on annual yield: a longer delay can mechanically increase the distribution rate presented in the first year, due to a dividend deferral effect.
• Strategic choice: depending on your investment horizon, a short period is often preferable to start receiving income quickly.

For example, the Iroko Zen REIT offers a short holding period of 3 months, providing a yield over 7% in 2024. If this period had been extended to 6 months, the projected yield would have risen to over 8% (7.32% to 8.49%). These figures show that timing can change the perception of performance.

A concrete illustration:

• Purchasing shares in April with a holding period set at the beginning of the fourth month following subscription results in a first dividend starting August 1st.
• For quarterly payments, dividends arriving in October, the delay also impacts the actual receipt date of funds.
• A 6-month delay will postpone actual income, requiring cash flow planning during this period.

Holding Period ⏳	Impact on annual return (%) 📊	Impact for the investor 💡
3 months	7.32%	Income received quickly, cash flow relieved
5 months	8.08%	Apparent higher annual yield
6 months	8.49%	Increased yield, but longer delay before income

To deepen understanding of the taxation applicable to rental income from REITs, consult this helpful article on the taxation of rental income in 2025.

REITs and retirement savings: a growing popular combination

Investing in REITs proves particularly strategic when combined with a Retirement Savings Plan (PER). This partnership allows for tax advantages while diversifying one’s real estate portfolio. The success of this approach among investors is explained by:

• The possibility of funding your PER with REIT units, offering a higher yield than traditional euro funds.
• The risk pooling inherent to REITs, which simplifies management compared to direct real estate investments.
• The stability of income streams, suitable for a long-term patrimonial vision, perfectly aligned with retirement objectives.

Among REITs marketed by groups like BNP Paribas REIM or Swiss Life, investors can find suitable formulas. However, it is essential to evaluate taxation and the estimated holding period to maximize net yields [source].

Advantages of REITs in PER 💼	Description
Immediate tax advantage	Deduction of contributions from taxable income according to PER rules
Higher yield	Better than traditional euro funds, thanks to rental income from REITs
Delegated management	No rental worries, the management company handles the assets

Risks to consider before investing in REITs in 2025

Although REITs present considerable advantages, it is important not to overlook certain risks that can impact profitability or liquidity:

• The risk of decline in share value, especially for older REITs heavily exposed to segments such as offices or certain retail properties.
• The risk associated with vacancy, which can lead to reduced rents and yields, particularly in certain geographic areas.
• The significant delay before dividend receipt, related to the aforementioned holding period.
• High entry costs (between 8% and 10%), requiring a long-term investment horizon to amortize.
• The difficulty of reselling shares, which can reduce liquidity in case of urgent cash needs.

To limit these risks, it is advisable to:

• Prioritize REITs with significant diversification to distribute territorial and sector risks.
• Scrupulously examine the portfolio, the occupancy rate (TOF), and rent levels.
• Don’t hesitate to diversify investments between REITs and other products such as OPCIs or SCI.
• Consult expert analyses, for example via scpi.org, to identify the most solid REITs.

Risks of REITs ⚠️	Tips to limit ⚙️
Drop in share prices	Favor young diversified REITs
Vacancy	Analyze TOF and tenant quality
High entry fees	Invest long-term (minimum 8 years)
Liquidity	Plan diversification of investments

It may be wise to explore additional and alternative real estate investments, sometimes promoted by specialized brokers such as Stellium Courtage [source].

The impact of major management companies and their role in 2025

Powerful actors such as Amundi, La Française, Swiss Life, AEW Ciloger, or BNP Paribas REIM play a crucial role in the REIT market. Their expertise and capacity to manage large portfolios are a guarantee of reliability, but also pose challenges for investors:

• These companies have resources to ensure active management, diversification, and good asset selection. This enhances resilience against fluctuations.
• Conversely, they can influence the share prices, especially during major market changes in the real estate sector.
• Their positioning in key segments (offices, retail, residential) affects the overall performance of the REITs they manage.

For example, La Française’s active management of its diversified REITs allows it to maintain stable yields despite volatility. However, concerns have been raised about certain REITs marketed by BNP Paribas, which are experiencing difficulties in the office segment [source].

Management Company 🏢	Main Specialty	Strengths 💪	Risks/Points of attention ⚠️
Amundi	Diversified, Office	Rigorous management, strong history	Watch out for overpriced offices
La Française	Diversified REITs	Capacity to invest across multiple sectors	Prices impacted in 2023-2024
Swiss Life	Health, Residential	Strong presence in key sectors	Narrow segmentation of assets
AEW Ciloger	Diversified, Logistics	Dynamically managed, diversified	Exposure to specific markets

Strategies to succeed in REIT investment in 2025

To develop an effective REIT strategy, it is essential to take into account current challenges and market specifics:

1. Set a long-term horizon (at least 8 years) to amortize high entry costs and fully benefit from returns.
2. Choose REITs with diversified assets, spanning various geographies and sectors, for example with medium-sized assets spread across regions.
3. Prioritize young or developing REITs that benefit from the current economic environment.
4. Monitor the holding period and its impact on cash flow.
5. Consult specialists before any subscription and rely on platforms like scpi.org for detailed analyses.

Here is a summary table of the main points to consider:

Key Point 🎯	Practical Advice 💡
Investment duration	Plan for at least 8 years to amortize costs
Diversification	Invest in geographically and sectorally diverse REITs
Asset analysis	Review distribution, TOF, and rental quality
Holding period	Ensure it matches your financial goals

For further information and best practices for your budget, visit: Crédit Agricole Assurance Prédissime.

FAQ on REIT investments in 2025

• What is the minimum amount needed to invest in a REIT?
  The entry ticket varies depending on the REIT, but generally ranges between 1,000 and 5,000 euros. Some life insurance contracts allow investments with a smaller capital.
• How is the yield of a REIT calculated?
  The yield is the ratio between the dividends paid over the year and the average share price. It can be affected by the holding period and share price variations.
• Are REITs liquid?
  Liquidity is limited compared to stocks or SICAVs. Reselling shares can take several months. Hence, the importance of prudent diversification.
• What fees are associated with REITs?
  They mainly include entry fees (8-10%), annual management fees, and sometimes exit fees. These costs reduce the yield unless the investment is long-term.
• Can I invest in REITs via a PER or life insurance?
  Yes, many REITs are available within these contracts, allowing benefits from both advantageous taxation and managed management.