Last week I had a chance to overlook Europe’s P2P property market trends in Lithuania’s Economics Conference.
During the last few months, I had a unique chance to work together with Germany, Spain, UK and Baltic states platforms founders and executives. I wanted to share a few of the insights, that might be interesting to hear for fellow P2P investors.
At this moment, it’s easy to see that institutional investors are coming into the P2P property industry. This trend is mostly seen in the UK and Germany, where several platforms are having lenders from Private Equity funds and Family Offices.
It’s natural, that this with time will lower the returns for retail investors and with slowly this trend is expanding through continental Europe. In Baltic states, institutional investors are just warming their hands and testing the market by investing small amounts into projects, but yet the clear impact isn’t being felt.
On the other hand, we can see that P2P platforms are gradually becoming not only small and medium-size businesses source of capital. This can be clearly seen in Germany, where one of our deal providers, have financed 2.4 Million Euros project for Marriot Hotel development. This means that the number of projects with time will not decrease, and their quality will even increase.
Another interesting feature is that in Europe, more platforms are having private deals, where only institutional investors or high net-worth individuals can participate in. Although, these deals usually have rather steep minimum ticket size- starting from 250K Euros.
It will be possible to invest to these deals through EVOEstate, with smaller amounts in the future, but this point we are providing , from various European countries and we are working on that with private clients. If you would like to take part in these deals- sign up now.