Portugal has the right conditions to lead the transition to regenerative agriculture in Southern Europe, at a time when climate risk and natural capital are becoming increasingly important in the valuation of rural land.
This is the conclusion of a new study by Savills Portugal, The Living Asset – Rebuilding Portugal's Natural Capital Through Regenerative Agriculture, which identifies this model as an emerging asset class.
The report describes Portugal as a “paradoxical market”: it offers a wide diversity of climates, soils and production systems, yet agriculture accounts for less than 3% of national gross value added. This gap between ecological potential and economic contribution is precisely the space where regenerative investment can operate, unlocking value in under‑utilised assets while restoring the ecological foundations of production.
Alexandra Gomes, Head of Research at Savills Portugal, notes: “We are witnessing a profound reconfiguration in the way agricultural land is valued. It is no longer enough to look solely at crop yields: soil health, water and biodiversity have become financial variables as relevant as traditional indicators. Portugal has a unique opportunity to align economic and environmental performance within a single asset class.”
A new model for land valuation
The study points to a structural shift in European agriculture. Extractive models are giving way to systems that regenerate soil, water and biodiversity.
Savills anticipates five key dynamics for the coming decade: climate resilience as a performance driver, integration of natural capital into valuations, rising demand for sustainable products, greater regional specialisation and the mainstreaming of monitoring for regenerative practices.
From a financial perspective, agricultural land in Portugal can generate annual returns in the range of 5% to 7%, above the typical 3% associated with super‑core real estate assets. Increasingly, investors recognise that soil health, water availability and biodiversity are no longer merely environmental criteria but core indicators of long‑term stability and value creation, with direct implications for access to green finance and for meeting ESG and impact‑investment objectives.
Policy and practice
The policy dimension is another pillar of this evolution. Despite the frameworks provided by the CAP and PEPAC, regenerative agriculture only partially benefits from existing support schemes. It is estimated that between 40% and 60% of Portugal’s cultivated area incorporates at least one regenerative practice, but only 10% to 15% operates under a truly integrated regenerative regime.
The almond case study
In practice, these changes are particularly evident in certain crops. Almonds are the most visible example of this transformation: in less than a decade, Portugal has become the world’s third‑largest net exporter, underpinned by the irrigation schemes of Alqueva and Idanha‑a‑Nova. The international capital that has accompanied this growth has also increased pressure on water and soils, making regenerative practices critical to safeguarding investments.
Bruno Amaro, Rural Business Developer at Savills Portugal, comments: “Regenerative practices represent a significant step forward for agriculture and are probably the most important development since the introduction of chemical fertilisers. Portugal has taken a leading role in their implementation and, with this study, we aim to highlight this positioning and raise awareness of the topic. Almond orchards, for example, stand out as one of the crops where results have been most impressive.”
A decisive decade for Portugal
Beyond these case studies, the report also maps the country’s regenerative potential. It identifies several regions with strong capacity to scale regenerative models – including Alentejo, Oeste, Douro, Ribatejo and the Azores – and concludes that Portugal is entering a decisive decade.
The combination of ecological diversity, still‑competitive land prices and climate urgency is opening a window of opportunity for Portugal to position itself as a regenerative hub in Southern Europe by 2030, as carbon, biodiversity and water markets continue to mature.
The study The Living Asset – Rebuilding Portugal's Natural Capital Through Regenerative Agriculture was presented on 26 May in Évora, at the 5th Portugal Nuts Congress, dedicated to the competitiveness of tree nuts and to regenerative agriculture.