Alternative investment trends in Europe: which Models are taking off?
In a context marked by macroeconomic uncertainty, inflation, and high interest rates, many European investors are rethinking their traditional strategies. That’s why in this article, we explore the latest alternative investment trends in Europe. Stock and fixed-income markets have shown erratic behavior in recent years, leading to growing demand for assets that are less tied to financial cycles and capable of offering risk-adjusted returns.
It is within this environment that alternative investments are gaining momentum: models such as real estate crowdfunding, renewable energy, and tokenized assets are attracting increasing interest from both retail and institutional investors. Below, we examine some of the most prominent trends taking off in Europe, what’s driving them, and why they are shaping a new way to build more diversified and resilient portfolios.
Real estate crowdfunding: consolidation and access to professional projects
One of the alternative models that has gained the most traction in the European market is real estate crowdfunding, which allows small and medium investors to participate in real estate projects through digital platforms. This model has matured significantly over the past five years, supported by a unified European regulatory framework that has enhanced transparency and investor protection.
Platforms such as Urbanitae, a market leader in Spain, have demonstrated their ability to connect professional developers with individual investors seeking to diversify their assets. In 2024 alone, Urbanitae channeled over €200 million into new projects, with average returns above 12% IRR on completed deals. This type of investment offers exposure to the real estate market without the burdens of direct property ownership, which is particularly appealing amid high tax pressure on housing and regulatory changes affecting residential rentals in several European cities.
Renewable energy: atability and alignment with ESG criteria
Another sector that is attracting growing alternative investment is renewable energy, driven by both European climate goals and the increasing need for energy security. Specialized funds, co-investment vehicles, and even crowdfunding platforms are channeling resources into solar, wind, and industrial self-consumption projects.
These assets are attractive due to their ability to generate stable and predictable long-term income, often backed by power purchase agreements (PPAs) or favorable regulatory frameworks. In addition, they meet ESG (Environmental, Social, and Governance) criteria, adding value as institutional investors increasingly prioritize sustainability requirements.
In countries like Germany, France, and Spain, small- and medium-scale renewable developments are creating opportunities for non-institutional investors, through platforms that enable funding for photovoltaic plants or energy efficiency infrastructure in local communities or businesses.
Tokenized assets: accessibility and efficiency in new formats
Asset tokenization is one of the most emerging trends within alternative investing in Europe. Through blockchain technology, real-world assets like real estate, private bonds, or even artwork can be divided into digital shares — tokens — that are traded on specialized platforms. This model promises to improve liquidity, reduce operational costs, and make traditionally illiquid investments more accessible.
In Spain, some platforms have already begun operating under regulatory licenses adapted to the new European framework. Tokenization is still in its early stages, but all signs point to growing adoption as legal frameworks and technological infrastructures continue to mature.
This type of asset is particularly appealing to younger or digital-native investors who value operational agility, transparency, and the ability to build highly diversified portfolios with relatively small amounts.
A shift in mindset amid uncertainty
The search for alternative investments is not only driven by a desire to escape the volatility of traditional markets, but also by a fundamental shift in investor mindset. European investors — both retail and professional — are increasingly open to models that prioritize diversification, positive impact, and autonomy in managing their wealth.
The rise of real estate crowdfunding, renewable energy investment, and asset tokenization reflects this evolution: all of these models share a logic of sustained returns, connection to the real economy, and adaptability to a more fragmented and less predictable economic environment than in previous decades.
Although each model has its own particularities, they all benefit from more developed digital infrastructure, clearer regulatory frameworks, and growing demand for alternative financial products. As these assets mature, it is likely they will be integrated more naturally into mixed portfolios, where traditional investments coexist with new ways of building long-term value.
