A rapidly growing market: Key figures for 2026

The figures for the life annuity and bare ownership market reflect exceptional growth, contrary to the consolidation trend in the traditional real estate market.

 

Nearly 6,000 property division transactions are completed each year in France, representing a 20% increase since 2020. The total business volume reaches €1.1 billion, redistributed annually in the form of capital and income. More than 80,000 retirees. This growth does not reflect a passing fad but a structural trend. This trend is part of a profound transformation of the French real estate landscape: accelerated demographic aging, a lasting tightening of access to traditional mortgage loans, pressure on the purchasing power of retirees, and the emergence of a new generation of forward-thinking buyers.

 

Market Structure

Regarding the distribution of arrangements, the occupied life annuity remains by far the most common – approximately 66% of transactions, confirming the primary motivation of homeowners: to continue living in their own homes. The sale of bare ownership continues its growth, accounting for approximately 20% of transactions, driven by increasing investor demand. Other real estate monetization solutions complement this landscape, such as life leaseback or life annuity sales, which address specific asset situations.

 

The average price

The average value of properties sold as life annuities or bare ownership is around €285,784. Nationally, with 12% of properties exceeding €500,000. In the segment of exceptional properties in Paris and the Île-de-France region, where Junot Viager is particularly active, these averages are obviously far exceeded, with a significant proportion of transactions exceeding one million euros.

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Why sell as a life annuity or bare ownership: the advantages for owners

For homeowners, life annuities and bare ownership represent much more than a simple real estate sale. They are wealth management strategies that transform a fixed asset into concrete financial resources, without disrupting their lifestyle.

 

Immediate capital and secure income

Upon signing, the seller receives a down payment (in a life annuity) or a net seller capital (in a bare ownership sale). This liquidity Immediate access opens up new financial opportunities: financing projects, supporting loved ones, and securing daily life. With a life annuity, this initial capital is supplemented by a monthly lifetime annuity, guaranteed by a proven legal framework. According to the 2025 Renée Costes Barometer, the average down payment reaches €76,252 and the average annuity is €711. per month, for an average total capital of €263,277 received by the seller over the duration of the transaction.

Maintaining Residence

Whether through a life annuity with retained occupancy or bare ownership, the seller retains the usufruct—the right of use and occupancy for life. They continue to live in their home under the same conditions as before.

This continuity of living environment is the most distinctive benefit of these arrangements. 94% of retirees want to age in place: life annuities and bare ownership are currently the only estate planning solutions that simultaneously meet this need and the need to access capital.

 

Early inheritance planning and tax-deductible gifts

The capital received from the sale can be used to make largely tax-deductible gifts to loved ones. A growing proportion of sellers (21%) use these mechanisms precisely to plan their estate transfer, support their children's property purchases, or finance their grandchildren's education. Giving during one's lifetime rather than bequeathing assets allows for full use of inheritance tax allowances, renewable every fifteen years—a powerful estate planning tool that is too often underutilized.

 

Favorable Tax Treatment

The capital received from the sale of the bare ownership of the primary residence is, in almost all cases, exempt capital gains tax. In a life annuity with retained occupancy, the property tax can be transferred to The buyer takes ownership upon signing, and major repairs, as defined in Article 606 of the French Civil Code, are the responsibility of the bare owner. These provisions significantly reduce the seller's housing budget and make the division of ownership one of the most tax-efficient estate planning tools.

 

The Profile of Sellers in 2026

The average seller today is 74.4 years old, but the recommended minimum age starts at 65. The breakdown is as follows: 39% single women, 35% couples, and 26% single men. Contrary to a persistent misconception, 63% of sellers have children: life annuity and bare ownership These are no longer solutions for retirees without heirs, but rather deliberate estate planning choices. The main motivations are: financing daily expenses (31%), enjoying new leisure activities (21%), making donations (21%), protecting a spouse (12%), financing renovations (8%), or repaying a loan (7%).

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Why invest in life annuity or bare ownership? the advantages for buyers

From the buyer's perspective, the life annuity and bare ownership market has undergone a profound transformation in the last five years. Long perceived as a niche reserved for sophisticated investors, this market is now attracting a new generation of buyers seeking solid and tax-optimized investments.

 

An immediate discount on the property's value

Investing in life annuities or bare ownership

It is based on a simple principle: the buyer purchases the property at a discounted price in exchange for the seller retaining the right of usufruct. This discount, calculated according to the age of the annuitant and the terms of the transaction, represents a unique wealth-building opportunity in the French real estate market.

 

An attractive long-term return

According to the 2025 Renée Costes Barometer, investing in a life annuity or bare ownership It boasts an average return of 6.8%, with an average investment horizon of 14.3 years. This performance significantly surpasses that of traditional rental investments, without the associated management and tax burdens.

 

No bank loan, no property management

Investing in split ownership does not require bank financing: payment is immediate, either as a lump sum and annuity (life annuity) or as a single capital sum (bare ownership). In a context of persistently high interest rates, this characteristic transforms a once-confidential investment into a particularly competitive option. In bare ownership, in particular, the investor has no rental management responsibilities, no tenants to find, no unpaid rent to deal with, and no property condition reports to conduct. The operation is entirely passive for the duration of the split ownership.

 

Taxation Optimized

During the period of the split ownership, the bare owner is exempt from property tax, excluded from the IFI (French Real Estate Wealth Tax) base, and is not liable for tax on rental income — since they do not receive any. This tax optimization makes it one of the most effective investments for assets close to or above the IFI threshold.

 

A socially responsible dimension

Beyond Beyond financial advantages, investing in a life annuity or bare ownership has a strong human and social dimension: it allows a senior homeowner to enjoy a better retirement while increasing the value of their assets. It is one of the few real estate investments that creates value for both parties: the seller secures their future, and the buyer builds theirs.

 

The Profile of Buyers in 2026

This is where the market transformation is most dramatic. The core of the buyer market is now composed assets aged 35 to 50 represent more than half of acquisitions. Buyers over 60 now account for only a marginal share of the market.

This generational shift reflects a profound evolution: life annuities and bare ownership are now perceived as levers for proactive wealth building. The typical buyer is an active professional, keen to build real estate assets without incurring debt, with a view to inheritance or retirement. 15-20 years.

 

93% of buyers are individual investors, compared to 7% of institutional investors (family offices, insurance companies, dedicated SCPIs), whose share is growing rapidly. Nearly 60% invest in the region where the property is purchased, 31% in another region, and 11% from abroad. A telling detail about investor confidence: 27% are multi-buyers, meaning they have completed several transactions. For exceptional, high-end properties, the institutional share is significantly higher.

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A market present throughout France, with specific dynamics

While the market for life annuities and bare ownership was long concentrated in Île-de-France and Provence-Alpes-Côte d'Azur, it has gradually expanded across the entire French territory. While Île-de-France (23%) and the French Riviera (13%) remain dominant, Nouvelle-Aquitaine now accounts for 12% of transactions, followed by Occitanie with 10% [Renée Costes Barometer 2025]. The division of ownership rights is now extending to the entire French territory.

 

A Closer Look at the Parisian Market for Luxury Properties

The Parisian and Île-de-France market retains a strong distinctiveness: it concentrates the largest share of high-end transactions, with unit values significantly higher than the national average.

 

It is precisely in this segment that Junot Viager focuses its expertise.

Our field observations since 2025 confirm three major trends: - Short sales times for quality properties in sought-after districts; - A diversification of seller profiles, with a rise in transactions consciously chosen as part of a comprehensive wealth management strategy; - Increased demands for support, shifting the focus of added value towards specialized wealth management advice.

The forces that are firing sustainably the market

Several structural factors are fueling the growth of the life annuity and bare ownership market, and there is no indication that these will reverse in the short or medium term. Demographic aging is the primary driving force. According to INSEE, nearly 19 million French people are over 60 years old, representing almost 30% of the population. And nearly three-quarters of them own their homes, representing a considerable asset.

 

According to the January 2023 report from the High Commission for Planning, "When Baby Boomers Turn 85," the number of people aged 75 to 84 will increase by 49% between 2020 and 2030 in France, rising from 4.1 to 6.1 million. A massive demographic wave of senior homeowners, the vast majority of whom wishes to grow old at home while increasing the value of her assets.

 

The sustained contraction of traditional mortgage lending is transforming life annuities and bare ownership into competitive alternatives—for both sellers (who don't have to wait for a financed buyer) and investors (who don't have to bear the burden of bank restrictions).

 

The pressure on retirees' purchasing power is pushing many homeowners to reconsider the value of their primary residence. Nearly half Some retirees feel their pensions are insufficient to finance their ability to age well at home.

 

Early inheritance planning completes this picture. A growing proportion of transactions are part of a lifetime gifting strategy, rather than a traditional post-mortem transfer.

Our conviction: a market that is changing dimension

Beyond the figures, we are observing a genuine shift in status for life annuities and bare ownership. Long confined to marginal situations, these arrangements are now part of structured wealth management strategies, both for sellers and buyers. Three elements underpin this conviction: the professionalization of the market, with the rise of specialized players and a better-controlled legal framework. The growing public education on life annuities is helping to gradually dispel misconceptions about them. Their alignment with contemporary challenges—aging, inheritance, and credit contraction—places these solutions at the heart of today's wealth management strategies.

 

Our 18-24 month outlook is clear: the life annuity and bare ownership market will continue to grow, becoming more professional and gradually moving into the mainstream of wealth management.

It is within this dynamic that Junot Viager has chosen an exclusive specialization, to offer our clients the level of expertise now required by this rapidly changing market.

Junot's expertise in bare ownership and life annuities: tailored support

Junot Bare Ownership and Life Annuity supports owners and investors at every stage of their property division project: free asset assessment, tailor-made structuring, connection with a network of qualified buyers, notary follow-up, post-signing support.

Our multidisciplinary team of expert advisors, specialized lawyers, and notary partners guarantees a rigorous approach, rooted in the DNA of Maison Junot. Our exclusive focus on life annuities and bare ownership This allows us to master all the legal, tax, and estate planning intricacies specific to these arrangements.

 

 

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Frequently asked questions about the market life annuity and bare ownership

Is the life annuity and bare ownership market growing?

Yes, and sustainably. The market has grown by 20% since 2020, reaching approximately 6,000 transactions annually and €1.1 billion distributed to 80,000 retirees by 2025. This growth runs counter to the traditional real estate market, which has slowed due to tighter credit conditions.

 

What is the respective market share of life annuities and bare ownership?

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Occupied life annuity represents approximately 66% of property division transactions, compared to approximately 20% for bare ownership sales. The remainder corresponds to complementary arrangements such as vacant life annuity, life lease-purchase, or installment sale.

 

What is the average return on an investment in a life annuity or bare ownership?

The average annual return on an investment in property division is approximately 6.8%, for an average investment horizon of 14.3 years. This performance surpasses traditional rental investment, without the management constraints or taxes on rental income.

 

Who are the buyers of life annuities and bare ownership properties in 2026?

The dominant profile has shifted in recent years: the core of the market is now composed of actives aged 35 to 50, representing more than half of all buyers. 93% are individual investors, 7% are institutional investors, a growing share in high-end properties.

 

Is the life annuity market limited to Paris and the French Riviera?

No. While the Île-de-France region (23%) and the French Riviera (13%) remain dominant, the division of ownership rights is now expanding throughout France. The New Aquitaine region now accounts for 12% of transactions and Occitanie for 10%, reflecting a national trend.

 

What is the average age of a seller in a life annuity sale?

The average age of a seller in a life annuity sale is 74.4 years. The majority are between 70 and 80 years old, but it is possible to sell from the age of 65. The older the seller, the higher the percentage of transactions. The signing, plus the initial payment and the annuity or net capital from the seller in bare ownership, are important.

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