Estateguru, Europe’s largest platform for property-backed lending, notes in a market overview published on Wednesday that real estate markets in Latvia and Lithuania are showing increased momentum, while the situation in Estonia remains more balanced.

Daniil Aal, recently appointed CEO of Estateguru, observes that developers in Estonia are acting rationally and cautiously, given the significant stock of unsold properties.

“In Estonia, developers are planning with a long-term perspective and closely monitoring consumer behavior. Meanwhile, in Lithuania we’ve seen growth for four consecutive quarters, and Latvia is also on an upward trend,” said Aal.

Tarmo Kase, a member of the supervisory board at real estate agency Ober-Haus, adds that although the Estonian market is not experiencing major growth, it would be misleading to describe the situation as a crisis.

“In Tallinn, there are still around 19 transactions per 1,000 residents annually — nearly identical to figures in Riga and Vilnius. The average monthly number of transactions remains steady at about 700. However, while Vilnius has seen 50% growth and Riga 30%, Tallinn’s growth is below 20%. Consumer confidence in Estonia is low, inflation is high, and government tax policies have reduced purchasing power. As a result, buyers are focusing on need-based purchases, with a preference for well-maintained, renovated apartments over 10 years old,” Kase explained.

According to Aal, there are also clear positive developments. Notably, investor activity has increased, with more capital being lent to real estate developers.

“Compared to the last two quarters of 2024, the volume of deposits and the number of newly active investors on the platform has grown in the first half of this year,” he said. Aal attributes this growth to falling interest rates on term deposits and recent stock market volatility, which are encouraging people to explore alternative investment opportunities.

In total, more than EUR 33 million in real estate-backed loans were issued via the Estateguru platform in the first half of 2025. Of those, 95% are performing well, with borrowers meeting their obligations as agreed – a figure consistent with the past two years. Aal notes this as a positive signal for investors, as no changes in borrower behavior have been observed.

In Estonia, Estateguru has financed over 1,500 real estate-backed loans totaling EUR 385 million over the past decade, of which EUR 346 million has already been repaid to investors. Across its full portfolio, Estateguru has supported more than 7,000 real estate projects, funding them with over EUR 895 million. The platform has over 164,000 investors from more than 100 countries, with an average investor return of 10.08%.

Estateguru holds a crowdfunding services license issued by the Estonian Financial Supervision Authority, allowing it to operate across the European Union.

Source: BNS

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