Regional businesses in Australia are showing resilience and cautious optimism for the year ahead, according to the 2025 Regional & Agribusiness Horizons Report by NAB. The report provides insights into economic conditions, property trends, and investment opportunities shaping regional and rural Australia.
Khan Horne, NAB Executive for Regional and Agribusiness, highlighted the resilience of regional Australian businesses despite ongoing challenges. "Even with some economic uncertainty this year, we’re confident our regional and rural businesses are in good shape to deal with – and withstand – the potential headwinds," he stated.
Horne noted that those working in agriculture and other regional sectors are adept at handling unexpected challenges. He mentioned that while agriculture is thriving with favorable conditions leading to bumper harvests, there are still specific challenges such as commodity price fluctuations and severe weather events.
The report indicates that growth opportunities will depend on how well businesses adapt to changing conditions in 2025. Key findings include a projected $91 billion turnover for the agriculture sector for FY26, significant growth in food and beverage manufacturing investment, and soaring regional property valuations.
Regional property values have seen a 5.3% annual growth rate, surpassing metropolitan areas. By April 2025, median values reached $673,373—a 59% increase from pre-COVID prices—due to internal migration and lifestyle benefits of regional living.
Despite concerns about living costs, one in four regional Australians expects improvements in their lives. Population growth is driven by a better lifestyle and lower living costs compared to capital cities.
"There are good opportunities ahead," said Horne. He encouraged customers needing assistance to contact their Regional and Agribusiness banker for support.
The full report is available for those interested in further details about the findings.