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Peer2Peer Finance News | August 18, 2019

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EstateGuru targets up to £4.6bn share of European alternative property finance market

EstateGuru targets up to £4.6bn share of European alternative property finance market
Jordan Bintcliffe

ESTATEGURU saw a 50 per cent year-on-year rise in lending volumes in the first half of 2019, as it targets a €3-5bn (32.8-4.6bn) share of the European alternative property finance market by 2025.

The cross-border European peer-to-peer lender made €33.8m of new loans in the first half of the year, up from €22.6m in the first half of 2018.

“Real estate financing by different digital platforms will increase to €75.6bn by 2025,” said Marek Pärtel, EstateGuru’s co-founder and partner.

“In 2016 the amount was €2.85bn. EstateGuru’s ambition is to take at least €3-5bn of this expected amount.”

Read more: EstateGuru secures institutional credit line for Baltic loans

EstateGuru pointed to statistics from the World Bank that show 70 per cent of small and medium enterprises lack access to credit and identify that lack of access to finance as a major constraint on their growth.

By 2025, 12 per cent of all loans are projected to be financed by alternative providers including crowdfunding platforms.

EstateGuru is active in Estonia, Latvia, Lithuania, Finland, Spain, and last week announced its expansion into Portugal. Of these six markets, only the Lithuanian and Finnish markets are regulated, the company said.

“Until the European Commission regulates the crowdfunding market, EstateGuru will proceed with acquiring local licenses in each of the operating markets,” said Mihkel Roosme, head of business development at EstateGuru.

“Lithuania has one of the few regulated crowdfunding markets in Continental Europe, and we are officially listed as a crowdfunding operator in that country. We are also in the middle of the licensing process in Finland, which we hope to finalise by the end of this year.”

EstateGuru now has over 27,000 investors from 106 countries.

Read more: EstateGuru marks fifth birthday with a rebrand