European online investment platform EstateGuru says crowdfunding is back after booking two solid months of activity. According to the platform, investors committed €18.9 million to new projects during the months of July and August. At the same time, €30.4 million was returned to investors, including €3 million in interest income. In July and August, users of the crowdfunding platform financed a total of 200 different new projects.
EstateGuru, based in Estonia, operates across Europe, listing loans that are property-backed.
Estateguru CEO Mihkel Stamm commented on the report sharing that some investors became more cautious last fall and winter, but now they are back and investing.
The increase in their lending activity has largely been in the same rhythm as the increase in activity in the real estate sector.”
Stamm said that EstateGuru received over €10 million in invested funds during the month of August. At the same time, standards have tightened in regard to accepting projects for funding on the marketplace.
“… we have increased the LTV requirements for guarantees, and since July, the projects we offer have a rating based on Moody’s assessment,” said Stamm.
He emphasized again that Estateguru only offers real estate loans that are secured by a first-rank mortgage.
August was said to be a record month for Estateguru in regard to loan repayments, with €16.6 million returned to investors’ accounts. In the last two months, the volume of problematic loans has also decreased by more than €5 million.
Year to date, EstateGuru reports €66 million in committed funds with investors receiving €85 million in repayments.
Today, the Estateguru platform claims 160,000 users worldwide, with 7,000 of them joining in 2023.