The principle The buyer becomes the owner at signing, pays a bouquet, then a life annuity to the seller for the rest of their life.
Occupied viager The price reflects the seller’s right of occupation; during occupation, the buyer has neither the use of the home nor rental income.
The uncertainty The payment period is unknown: with €1,200 a month and a €120,000 bouquet, €336,000 paid after 15 years, €480,000 after 25.
Indexation At 2% a year, the annuity rises by about 49% over twenty years.
With METROREALTY Analysis of the property and its market, duration and indexation scenarios, support through to the final deed.
Introduction
Investing in property with a long-term view
The viager is a particular form of property investment in France. It lets you acquire a home by paying an initial lump sum, the bouquet, and then an annuity for the life of the beneficiary or beneficiaries.
With an occupied viager, the buyer becomes the owner as soon as the deed is signed, but the seller keeps a right of occupation. The investor therefore agrees to defer the use of the property, in return for a price that reflects this occupation.
This mechanism can offer attractive long-term prospects, provided its risks, uncertain duration and financial commitments are well understood.
At METROREALTY, we believe a viager investment should be analysed with the same rigour as a conventional purchase, with an added financial study of the commitments.
Why buy a property in viager
Investing in bricks and mortar on different terms from a conventional purchase.
The buyer does not necessarily pay the whole price at signing: they pay a bouquet, where there is one, then an annuity whose amount and changes over time are set in the contract. This can suit an investor who wants to build wealth over the long term and has enough resources for the future payments.
Buying at the occupied value
With an occupied viager, the value of the property is adjusted to reflect the right of occupation kept by the seller. This occupied value is lower than the free market value; the difference is the economic value of the occupation. It is neither a commercial discount nor a guaranteed gain.
Building wealth gradually
The investor becomes the owner at signing, while accepting not to have the use of the home straight away. This strategy suits a horizon of ten, fifteen or twenty years, although no duration can be guaranteed. It may interest buyers preparing for retirement or diversifying their property holdings.
Spreading part of the price
The annuity spreads part of the financial effort over time. It is not a bank loan: it is a contractual obligation whose length depends on the beneficiary’s life. The buyer must be able to keep paying even if their personal or professional situation changes.
No letting to manage
With an occupied viager and a right of use and habitation, the seller keeps living in the home: no tenant to find, but no rent either. This lack of income must be built into the return calculation.
Occupied or vacant viager: which to choose
Two formulas for very different projects.
The occupied viager (viager occupé)
The buyer becomes the owner, but the seller keeps a right of occupation defined in the deed. The price reflects this occupation. This formula suits investors who do not need the home in the near future.
The vacant viager (viager libre)
The buyer has immediate use of the home: they can live in it or let it, within the applicable rules. There is no reduction for occupation. A vacant viager can suit a plan to live in the property or to let it.
How the price of a viager is set
The first step is always the free market value of the home.
In Paris, this value depends heavily on location, floor level, lift, the condition of the building, light, layout and finishes. With an occupied viager, the right kept by the seller is then assessed, based on its nature, longevity data and the financial assumptions used. The result is an occupied value, split between the bouquet and the part converted into an annuity.
Example
An apartment has a free market value of €600,000. The seller, living alone, is 77: the value of the right of occupation comes to €240,000, and the occupied value to €360,000.
The buyer pays a bouquet of €120,000; the remaining €240,000 is converted into an annuity of about €1,826 a month.
If the annuity were paid for the seller’s statistical life expectancy (11.6 years), the buyer would have paid about €374,000 in total, bouquet included, before indexation and fees.
Illustrative example calculated by METROREALTY. The amount finally paid may be higher or lower, depending on the actual payment period.
Chart 1How the value of an occupied viager breaks down
For a single seller aged 77, these amounts correspond to a life annuity of about €1,826 a month (€21,912 a year), before indexation. For another age, or for a couple, the breakdown and the annuity would differ.
METROREALTY illustrative simulation — non-contractual assumptions. Example calculated by METROREALTY, not taken from an actual transaction; these proportions are not a scale applicable to every viager.
View the chart data
Component
Amount
Share
Occupied value
€360,000
60% of free value
Right of occupation
€240,000
40% of free value
Total free value
€600,000
100%
Bouquet
€120,000
33% of occupied value
Capital converted into annuity
€240,000
67% of occupied value
Corresponding annuity (single seller aged 77)
€1,826 / month
€21,912 / year
Longevity risk: a central factor
The viager rests on an uncertainty: the lifespan of the beneficiary or beneficiaries.
The buyer does not know how long the annuity will have to be paid. If the seller lives longer than the statistical assumptions, payments continue and the final cost can become significantly higher than expected. Conversely, a shorter period reduces the total paid.
This uncertainty is a fundamental feature of the viager, not an anomaly. A sound decision therefore rests on several financial scenarios, never on an assumed lifespan.
Chart 2The total cost depends on how long the viager lasts
The longer the annuity is paid, the higher the total cost: with a constant annuity of €1,200 a month, the buyer will have paid €336,000 after fifteen years and €480,000 after twenty-five, bouquet included. The actual duration cannot be known at the time of purchase.
METROREALTY illustrative simulation — non-contractual assumptions. €120,000 bouquet, non-indexed annuity of €1,200 a month, excluding fees, charges and discounting. Neither a valuation nor a return calculation.
View the chart data
Payment period
Bouquet
Cumulative annuity
Total paid
5 years
€120,000
€72,000
€192,000
10 years
€120,000
€144,000
€264,000
15 years
€120,000
€216,000
€336,000
20 years
€120,000
€288,000
€408,000
25 years
€120,000
€360,000
€480,000
30 years
€120,000
€432,000
€552,000
How to measure the return
Comparing the bouquet with the value of the home is not enough: every cash flow must be included.
the bouquet paid at signing;
purchase costs;
the annuity and any indexation;
service charges borne by the buyer;
works and exceptional expenses;
applicable tax;
possible changes in property value;
how long the home remains occupied;
the cost of the capital tied up.
The relevant indicator is notably the internal rate of return (IRR), calculated under several duration assumptions. Liquidity risk must also be measured: a property occupied under a viager can be harder to resell than a vacant home.
Chart 3The effect of indexation on the monthly annuity
No indexationIndexation of 2% a yearIndexation of 3% a year
Indexation protects the seller’s purchasing power but gradually increases the buyer’s commitment: at 2% a year, the monthly annuity rises by about 49% over twenty years.
METROREALTY illustrative simulation — non-contractual assumptions. Initial annuity of €1,200 a month, constant annual indexation; these rates are assumptions, not inflation forecasts. Amounts rounded to the euro.
View the chart data
Year
No indexation
Indexation 2% / year
Indexation 3% / year
Start
€1,200
€1,200
€1,200
5 years
€1,200
€1,325
€1,391
10 years
€1,200
€1,463
€1,613
15 years
€1,200
€1,615
€1,870
20 years
€1,200
€1,783
€2,167
25 years
€1,200
€1,969
€2,513
30 years
€1,200
€2,174
€2,913
Chart 4Cumulative cost with and without indexation
No indexationIndexation of 2% a yearIndexation of 3% a year
Over thirty years, 3% annual indexation brings the total paid to about €805,000, against €552,000 without indexation. Bar values in thousands of euros.
METROREALTY illustrative simulation — non-contractual assumptions. €120,000 bouquet and initial annuity of €1,200 a month, revised once a year; excluding fees, charges and discounting.
View the chart data
Period
No indexation
Indexation 2%
Indexation 3%
5 years
€192,000
€194,938
€196,452
10 years
€264,000
€277,676
€285,080
15 years
€336,000
€369,025
€387,824
20 years
€408,000
€469,882
€506,933
25 years
€480,000
€581,236
€645,013
30 years
€552,000
€704,180
€805,086
Demographic trends: what it means for investors
The INSEE projections published in June 2026 point to a sharp rise in the number of older people.
The population aged 80 or over could grow from 4.3 million in 2026 to nearly 9 million in 2070. This may encourage solutions that let older people draw on their property. It is also a reminder that longevity is a key parameter in calculating annuities and assessing risk.
Chart 5Share of people aged 75 and over
Ageing may support interest in the viager. It guarantees neither more transactions, nor rising property prices, nor the profitability of purchases.
Source: INSEE, 2026 population projections, central scenario (published 8 June 2026).
View the chart data
Year
Share aged 75 and over
2030
12.3%
2040
14.8%
2050
16.5%
2060
17.7%
2070
19.3%
Mortality tables give statistical probabilities, but never predict an individual’s lifespan.
What are the financial risks
Five points to examine before any commitment.
An unknown payment period
The annuity may be due for longer than expected: the buyer must be able to cope with this without straining their budget.
Annuity indexation
If the contract provides for indexation, the annuity rises over time: an annual increase of 2% means the monthly payment rises by about 49% after twenty years.
Charges and works
Depending on the clauses, the buyer may bear service charges, major repairs or works voted by the co-owners. Reviewing the minutes of general meetings, the multi-year works plan and the condition of the building is essential.
No income during occupation
With an occupied viager and a right of use and habitation, the buyer receives no rent: the financial effort relies on their other resources.
Resale
A property bought in viager can be resold, but the transaction must take into account the seller’s rights and the transfer of the annuity obligations. The pool of buyers is smaller than for conventional property.
Viager or buy-to-let
Two strategies with different objectives.
Buy-to-let produces income as soon as the property is let, with charges, vacancy risk, works and regulatory obligations. An occupied viager generally produces no rent, but lets you acquire an asset at a value that reflects the occupation.
A viager is not necessarily more profitable: the outcome depends on the purchase price, the terms of the contract, the length of occupation and market trends. The two should be compared using consistent assumptions and discounted cash flows. To go further, read our page Investing in Paris or buying from abroad.
Can you finance a viager purchase
A mortgage is possible in some cases, but more complex than for a conventional purchase.
The seller’s guarantees on the annuity can make it hard to give a bank its usual security. The buyer must also have enough resources to pay the annuity. It is therefore important to check the financial feasibility of the project before committing.
Who is a viager investment for
A patient investor with a stable income.
A viager can suit a buyer who
has capital for the bouquet and costs;
has a stable enough income to pay the annuity;
is looking for a long-term property investment;
does not need to use the home straight away;
accepts uncertainty about the total cost;
wants to diversify their property holdings.
It is less suitable for an investor seeking an immediate return, high liquidity or fully predictable payments.
Investing in viager in Paris with METROREALTY
A successful viager investment starts with a good property purchase.
A poorly located, overpriced home needing heavy works does not become a good investment just because it is offered as a viager. Our approach rests on in-depth local property analysis: the features of the home, its surroundings, comparable sales and the factors that drive its long-term value.
This analysis is completed, depending on the case, by a financial study of the commitments attached to the bouquet and the annuity, under several duration and indexation scenarios. Our aim: an informed decision, with a clear view of both opportunities and risks. We speak five languages. See also our buyer’s guide.
French property sale in which part or all of the price is paid as a life annuity to the seller.
Bouquet
The lump sum paid to the seller on signing the final deed. Freely negotiated, it can even be zero.
Rente viagère (life annuity)
The amount paid to the seller at regular intervals, usually monthly, until the death of the seller or the last beneficiary.
Crédirentier
The seller, who receives the bouquet and then the annuity.
Débirentier
The buyer, who becomes the owner and pays the bouquet and then the annuity.
Viager occupé (occupied)
A sale in which the seller keeps the right to live in the home, which reduces the value used in the calculation.
Viager libre (vacant)
A sale in which the home is vacated: the buyer can live in it or let it straight away.
Right of use and habitation (DUH)
The seller’s personal, non-transferable right to live in the home; it does not allow the home to be let.
Usufruct
The right to use the property and receive its income, for example by letting it. Broader than the right of use and habitation.
Occupied value
The value of the home taking into account the seller’s right of occupation; it is the basis for the bouquet and the annuity.
Aléa (uncertainty)
The uncertainty about how long the annuity will be paid, which depends on the seller’s lifespan; it is what makes the viager a contract of chance.
Termination clause
A clause allowing the sale to be cancelled if the annuity is not paid; the seller then recovers the property, under the terms of the deed.
Reversionary annuity
An annuity that continues to be paid to the surviving spouse after the first seller’s death, if the deed provides for it.
Frequently asked questions
Your questions about the viager
It depends on the purchase price, how long the annuity is actually paid, its indexation, charges, fees and changes in the property’s value. It is measured by an internal rate of return calculated under several duration scenarios, never on an assumed lifespan.
The annuity remains due, so the total cost rises. With a €120,000 bouquet and a non-indexed annuity of €1,200 a month, the buyer has paid €336,000 after 15 years and €480,000 after 25. You must be able to sustain long payments without straining your budget.
Depending on the deed, the buyer usually bears major repairs and often the property tax, and the seller day-to-day upkeep. Review the minutes of general meetings and planned works before committing.
It is possible in some cases, but more complex than a conventional purchase, because the seller’s guarantees on the annuity limit the bank’s security. The buyer must also have enough income to pay the annuity.
Yes, but the resale must take into account the seller’s right of occupation and the transfer of the annuity obligations. The pool of buyers is smaller than for a vacant home.
The annuity is revised each year according to the index set in the deed. With 2% annual indexation, an annuity of €1,200 a month reaches about €1,783 after 20 years, an increase of about 49%.
We analyse the property and its market, study the commitments attached to the bouquet and the annuity under several scenarios, and support you through to the final deed with the notary. We call you back within 2 business hours.
Sources
References and method
Demographic figures are official; examples and simulations are illustrative and non-contractual.
