Life Annuities and Bare Ownership: A Rapidly Growing Market

While the traditional real estate sector is experiencing a slowdown, the market for life annuities and bare ownership continues to grow, with a 5% increase in 2024. More than 6,000 transactions were completed, redistributing 1.1 billion euros in additional purchasing power to French retirees.

Contrary to popular belief, life annuity and bare ownership sales are not limited to the Île-de-France region and the French Riviera, which account for 26% and 14% of transactions, respectively. Other regions, such as Nouvelle-Aquitaine (11%) and Occitanie (10%), are also experiencing sustained growth, closely followed by Auvergne-Rhône-Alpes (9%).
 

The diversity of properties sold under life annuity and bare ownership agreements reflects the French real estate market. With 57% being houses and 43% apartments, the average property value is €287,952. It is worth noting that 13% of properties are valued at over €500,000, and some transactions even involve exceptional properties worth several million euros.

The market’s momentum is driven by an expanding range of solutions designed to better meet retirees’ needs and life plans. 92% of transactions involve occupied properties, demonstrating retirees’ desire to continue enjoying their homes while monetizing their real estate assets.
 

The life annuity with continued occupancy (lump-sum payment and annuity) remains the most popular option (68%), followed by bare ownership (immediate lump-sum payment), which now accounts for 21% of sales. New options, such as the “sale-and-lease-back for life” (a full sale accompanied by a lifetime lease agreement), launched in late 2023, are also proving very popular.
 

Independent and Generous Retirees
Contrary to common misconceptions, life annuity and bare ownership sales are not limited to retirees without heirs. More than 64% of sellers have children, who are often involved in the transaction. For 31% of sellers, the main motivation is to finance their daily living expenses, while 22% wish to make gifts—a figure that is steadily increasing. Since gifts made during one’s lifetime are often tax-exempt, sellers can plan for their estate by reducing the tax burden.

The share of individuals investing in life annuities and bare ownership remains stable at 93%. Institutional investors (pension funds, mutual insurance companies, insurance companies, etc.) account for 7% of transactions. Individuals take a very local approach, with 60% of them living in the region where they invest.
 

Thanks to simplified management, investments in life annuities and bare ownership also attract investors from other regions (21%) and even other countries (11%), particularly French expatriates. 

This momentum can be attributed to the socially responsible nature of life annuity and bare ownership transactions. It is also worth noting that 28% of investors are repeat buyers, demonstrating the appeal of this investment, which combines profitability with a positive social impact.

(Source: Renée Costes Viager)