Estateguru CEO: Goal is to exceed one billion euros in total loans
The total volume of loans issued by investors on the Estateguru platform over its decade of operation may exceed the 1 billion euro mark next year, and along with this, the income earned by investors should in turn exceed the 100 million euro mark, predicts company CEO Mihkel Stamm.
"Our portfolio from the last two years is performing excellently and since the entire sector is moving upwards, investor interest in real estate-backed loans is growing accordingly. This way we can reach such significant figures in our activities in the coming year," says Stamm adding that last autumn the total volume of issued loans exceeded 850 million euros and at the same time investor income exceeded the 86 million euro mark. The Estateguru platform has a total of over 160,000 investors, of which approximately 10,000 joined during 2024.
According to Stamm, it is difficult to find alternative instruments to crowdfunding today that would allow an investor to earn approximately ten percent interest income with such strong collateral as a first mortgage on real estate. "Every investment is associated with risk and every investor assesses the ratio of expected return and investment security in addition. Today, crowdfunding is able to compete very successfully with all traditional investment opportunities," commented Stamm adding that from the new year, crowdfunding is at a new level in the eyes of the legislator, the Estonian state. "From the new year, all private investors will be able to freely place their investment account funds into crowdfunding as well," notes the Estateguru CEO, referring to recently adopted legislation.
According to the Estateguru CEO, an important reason for next year's "billion target" is the rapidly growing interest from real estate developers this autumn. "In the second half of the outgoing year, optimism has been felt in the real estate market, which has also encouraged developers to move forward with several projects. This in turn has led to increased interest in the financing options we offer," said Stamm and added that in the final quarter of the year, the number of loan applications increased in all three Baltic countries.
Estateguru is a leading pan-European investment platform that offers small and medium-sized enterprises loans secured by real estate and carefully selected investment opportunities to our global investor community. We are developing a borderless digital ecosystem for financing and investing in real estate projects in Europe and beyond. By connecting different service providers, entrepreneurs and investors in one operating environment, we can offer something unique that other financial institutions cannot – smooth, cross-border and digital service to borrowers and investors. The Estateguru team includes nearly 40 professionals in offices located in Tallinn, Riga and Vilnius.
