In the first half of the year, Estateguru’s investors financed 269 different real estate projects in the total amount of 44 million euros, and investors’ accounts received 51 million euros as repayments with an average interest of 9%.
“The volume of financing of new loans was at the level of 7-8 million euros per month, and the total volume of the loan portfolio remained stable, close to 300 million euros”, said the CEO of Estateguru, Mihkel Stamm, who delivered a concise summary of the first six months. “The new investor registrations level has been outstanding, with over 5,000 investors joining the platform during this six-month period, leading to an impressive total investor count of 157,000.”
“In the first half of the year, we saw renewed interest from investors, which is very important for us. A total of 55% of all investments were made using our Auto Invest feature, which confirms that experienced investors maintain their trust in the quality of the projects we offer,” said Stamm. He further indicated that the use of the automated investment option increased 49% when compared to the previous year.
According to Stamm, all parties have by now accepted the changes that have taken place in the real estate and financial fields over the past year. “We have seen a rapidly growing interest from borrowers, which is largely driven by the significantly increased interest rates on development loans offered by banks, and this is coupled by the renewed desire of small investors to invest money in new projects,” said Stamm. He also emphasized the fact that all loans are guaranteed first priority in favor of Estateguru and secured with a mortgage.
In response to the current macroeconomic climate, Estateguru has adjusted its strategy by focusing more on bridge lending with existing, performing borrowers. To reduce concentration risk, the maximum limits for development loans have been lowered. Additionally, the company remains dedicated to continuously improving credit policies, underwriting practices, and portfolio management, aiming to achieve an institutional-grade standard.
Estateguru is the leading Pan-European marketplace facilitating property-backed loans for SMEs and carefully selected investment opportunities for our global investor base. We are developing a digital and borderless ecosystem for real estate financing and investing in Europe and beyond. By connecting different service providers, SMEs and investors into one single marketplace, we can offer something unique that other financial institutions cannot – a seamless, cross-border and digital service for borrowers and investors. The team consists of close to 80 professionals from 12 different nationalities based in Helsinki, London, Tallinn (HQ), Riga, Vilnius and Berlin.