editorial
European online investment platform EstateGuru has announced a resurgence in crowdfunding activity after experiencing two strong months. During July and August, investors committed €18.9 million to new projects on the platform, with €30.4 million being returned to investors, including €3 million in interest income. Over this period, users financed a total of 200 different projects. EstateGuru, which is based in Estonia but operates across Europe, specializes in property-backed loans. CEO Mihkel Stamm noted that investors had become more cautious in recent months but were now returning to the platform. He also highlighted that lending activity had mirrored the growth in Europe’s real estate sector. EstateGuru received over €10 million in invested funds in August alone, and standards for accepting projects for funding have become stricter, with increased LTV requirements for guarantees and a rating system based on Moody’s assessment. The platform only offers real estate loans secured by a first-rank mortgage. Additionally, August saw a record month of loan repayments, with €16.6 million returned to investors’ accounts. The volume of problematic loans has also decreased by over €5 million. EstateGuru has reported €66 million in committed funds to date, with investors receiving €85 million in repayments. The platform currently has 160,000 users globally, with 7,000 joining so far in 2023.
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