The Iberian agribusiness sector reached an institutional investment volume of 1.2 billion euros last year, representing a 50 percent year-on-year growth, idealista reports.

According to the Iberian Agribusiness Report 2026 by CBRE, this result was driven by mergers and acquisitions (M&A) and new debt structures, with the domestic market standing out in larger-scale operations.

Director of Agribusiness for Southern Europe at CBRE, Manuel Valadas Albuquerque, explains in an official statement: “Portugal has established itself as one of the main centres of attraction for institutional capital operations in the region. Historically, most agribusiness transactions in the Iberian Peninsula with a ticket exceeding 20 million euros are concentrated in the Alqueva region, surpassing other more consolidated production centres, such as Andalusia.”

Water security and land value drives investment

The report also reveals that in the Iberian market, the total investment in agribusiness exceeded 5.3 billion euros between 2022 and 2025, with industrial players standing out, representing approximately 40 percent of the total investment volume.

Climate and structural water resilience, along with the value of land at competitive prices, are some of the factors that make Iberian agribusiness attractive.

Average values ​​for bare land in Portugal ranged from 28,000 euros to 40,000 euros per hectare in Alqueva, from 20,000 euros to 42,000 euros in Sado, from 20,000 euros to 28,000 euros in Santarém, and from 26,000 euros to 35,000 euros in Castelo Branco. In the Algarve, due to the profitability of subtropical crops such as avocado, values ​​ranged from 50,000 euros to 90,000 euros per hectare.

Land prices across the Iberian market remain significantly lower than in markets such as California and Australia, where prices range from 70,000 to 90,000 euros per hectare, due to greater water needs.

According to José Pedro Pereira, Associate Director of Agribusiness at CBRE Portugal, reliable access to water is a central investment criterion: “In February 2026, Portugal recorded 242 mm of rainfall, a value 329 percent above the average for the month. In parallel, the reinforcement of water infrastructure continues with new irrigation blocks, totalling more than 6,000 hectares in Messejana, Vidigueira and Moura, with completion scheduled between 2026 and 2027. Additionally, the adjustment of water allocations, such as the fixing at 7,000 m3/ha for almond orchards and 3,700 m3 for canopy and hedgerow olive grove systems in Alqueva, reinforces the demands of the current context and the transparency in communication with investors.”

Olives and avocados remain key investment focus

At the moment, the Iberian Peninsula has more than 40 professional operators managing over 400,000 hectares, idealista reports.

Olives and avocados remain the main investment focus this year, while almond and pistachio orchards continue to cause debate due to their volatility.

Various business models and strategies, together with the increasing outsourcing of production, have transformed family-run farming operations into more institutionalised businesses.

General Director of CBRE Portugal, Francisco Horta e Costa, says in an official statement: “The current macroeconomic environment, although marked by some volatility and a moderation in fundraising in Europe, reaffirms Agribusiness as a defensive asset against inflation, supported by solid long-term fundamentals and diversification capacity. A favourable scenario for agri-food investment is even predicted for next year, according to a survey conducted by CBRE among the main players in this sector, which reveals that 57% of the sample expects a moderate increase in agricultural activity.”