EstateGuru has conquered another country and market as part of its rapid growth – Portugal. The first project in this country has just been approved and published on the EstateGuru platform.
With the successful opening of the Portuguese market, EstateGuru has achieved the next milestone in its long-term strategy.
“We want to become the leading ecosystem in the alternative lending market for small and medium-sized companies across Europe. EstateGuru is now providing fast and flexible lending solutions to its borrowers in six countries. In addition to the Baltics, we are active in Finland, Spain, and now also in Portugal.
“Throughout the last five years, we’ve managed to provide excellent returns to our investors and have not faced any loss of investments. The quality of loans and compliance with KYC/AML regulations are essential for us, and therefore, we maintain a strong focus on these areas.
“Supported by high-level competencies and the network of the owners and management team, EstateGuru continues its ambitious strategy to attract new investors and expand across Europe over the next three years”, says Mihkel Roosme, Head of Business Development at EstateGuru.
Portugal has shown good recovery after the global economic crisis back in 2009 and 2010, and currently provides excellent investment opportunities in its real estate market. The average GDP growth has been ca 2% year on year for the past two years, and the unemployment rate has gone down to 6,8% during the first quarter of 2019. Due to the gentle and warm climate, Portugal has remained a top-rated travelling destination for people across the whole of Europe. With the growth of wealth in the society in general, and constant harmonization of European legislation, more and more people are ready to buy a property somewhere under the Mediterranean sun either for vacation or business purposes and we expect this trend to continue.
There are established communities of many nationalities (UK, Irish, German, Swedish, etc.) who help each other to navigate the local real estate landscape. At the same time, restrictive regulations in the banking sector are continually creating new burdens for cross-border financing. These restrictions create a strong need for alternative financing solutions, and EstateGuru has precisely the competencies and capabilities to serve this need for cross-border lending. The same strict regulations are leaving many local entrepreneurs who have good business potential and strong collateral positions, without options for financing.
The Portuguese real estate market set a record investment volume of the last five years in 2018, which came mainly from the commercial segment (3,3 billion euros, a 74% increase from 2017). In the residential sector, the number of properties sold grew by 19%, and national prices rose more than 10% (in Lisbon the rise was 20%). The real estate market was very active in all the real estate segments, and the supply doesn’t keep up with the demand. Foreigners account for over 50% of domestic property sales (led by the British and French).
2019 will be the year where we see many larger construction projects which will help to supply the continuing increase in demand. New developments coming on the market will increase substantially this year, and growth will strengthen in the next. Based on current trends, the real estate market seems to have a good and stable outlook. Nevertheless, EstateGuru takes the mitigation of risks very seriously and always adheres to conservative risk profiles when entering new markets.