A passion for WINE-GROWING

Far from being a whim of the rich and famous, producing one's own wine is not the exclusive domain of the hugely wealthy. Apart from the professionals, many company directors are ready and willing to take up the challenge when they retire. Especially since a wine estate not only responds to a desire for diversification and security but also serves as an inheritance. Taxation, and notably the question of the ISF, or solidarity tax on wealth, is never entirely absent at decision time. Unsurprisingly, some of the most sought-after vineyards are those in the Bordeaux region, which account for 30% of sales. Next in line are the Vallée du Rhône and Provence (27%) and Languedoc-Roussillon (13%). Then come Burgundy, Beaujolais, Savoy and Jura, on an equal footing with Val de Loire and the Centre region (10%). Champagne accounts for less than 1% of the market. There are two reasons for this state of affairs: the offer – sometimes highly confidential – and the prices. Selling prices for vineyards producing a generic wine, as opposed to an internationally renowned terroir, are worlds apart. The quality of the vines, output, distribution networks, stock and investments to be made are some of the aspects that have a strong influence on prices. Another is the existence of built heritage.

BORDEAUX: A STEADY DEMAND

With its rich heritage and very extensive vineyards (137,600 hectares), the Bordeaux region is still an attractive proposition, boasting quality built heritage. A hectare of vineyard sells for €89,500 on average (+ 5.9% year-on-year). Yet this average figure conceals considerable disparities. If a Bordeaux or Côtes-de-Bordeaux might sell for between €15,000 and €25,000 per hectare, a Graves could go for €50,000, while an Haut-Médoc could bring in as much as €80,000 or more. And it would not be unusual to pay out more than a million euros for a prestigious appellation such as Margaux or Saint-Julien, two million for a Pauillac, or more still for a highly renowned Saint-Émilion. ‘The demand exists,’ explains Karin Maxwell from Maxwell-Storrie-Baynes. ‘Since the start of the year, we have sold a dozen properties in the region to buyers from France, China, America, Australia...’ On estates offering a fine building and several hectares of vines, indulging your pleasure can cost between one and three million euros. The asking price for a 300m2 property near Libourne with 8.4 hectare grounds, 3.5 of which produce certified organic Bordeaux AOP, is €945,000. Not far away, another property comprising 12.5 hectares, 10.5 of which are planted with vines, and featuring a splendid and fully renovated 800m2 traditional Gironde manor house, is on the market for 2.862M€. For more space and greater prestige, you need to factor in around 5M€ to 10M€, or even as much as 40M€ to 50M€. ‘We even have investors ready and willing to pay sums of between 500M€ and 700M€, but we have nothing to offer them,’ Karin Maxwell concludes.

BURGUNDY: PRICES CAN BE SKY HIGH

In Burgundy, only 850 hectares of vineyard have changed hands (as compared to 3,200 in Bordeaux), not because of lack of demand but, rather, lack of supply. ‘French buyers are always in the market and they have mainly been in the majority since the 2008 financial crisis. But there are some very rich foreigners keen to acquire prestigious assets,’ points out Sébastien Jacquemont of Vinea Transaction Bourgogne-Beaujolais. The average going rate per hectare is €157,900 (+ 6.7% year-on-year) but there are significant differences depending on the terroirs. You can expect to pay between €150,000 and €160,000 for a hectare of Chablis, whereas the asking price for a Chablis Premier Cru would be €320,000. Where Côte d'Or is concerned, there is no waning in the enthusiasm for Côte-de-Beaune and its whites, and, indeed, there is rising interest in the Côte-de-Nuits reds. The cost per hectare ranges from 1.1M€ to 1.2M€. Prices for the grands crus are astronomical – as high as 11M€! Mâcon-Villages, Saint-Véran (€120,000/ha) and Pouilly-Fuissé (€220,000/ha) are more reasonable, as are Beaujolais and Beaujolais-Villages (€11,000/ha). ‘For Beaujolais/Maconnais, investors are looking for estates sized at between 5 and 15 hectares at a price of 1M€ to 5M€, and with a decent building or a single production facility where the focus can be on quality and which could be converted to organic production, for example,’ Sébastien Jacquemont explains. As for Beaujolais, the asking price for an estate with a 500m2 manor house needing renovation, set in 10 hectares of Beaujolais-Villages AOP vines (5 of which are rented) and 3.7 hectares of new plantations is between €800,000 and 1.5M€.

VALLÉE DU RHÔNE AND PROVENCE IN HIGH DEMAND

 What do a Châteauneuf-du-Pape, a Hermitage, a Tavel and a Côtes-du-Rhône have in common? A territory that follows the course of the Rhône from north to south and which, taking into account each vineyard's specific characteristics in terms of soil and climate, is hugely varied in production. This diversity is reflected in the prices. Hermitage, Côte-Rôtie, Condrieu... all very much in demand and all very expensive. A Crozes-Hermitage is more reasonable, at €130,000 per hectare. The same goes for Cornas, Saint-Peray and Saint-Joseph. Farther south, Côtes-du-Rhône, Côtes-du-Rhône-Villages, Châteauneuf-du-Pape, Gigondas, Vacqueyras and Rasteau are also extremely popular. ‘The price per hectare for Gigondas has risen 30% in two years with going rates of between €230,000 and €250,000,’ says José Canadas of Lord & Sons. A Vacqueyras could change hands for €130,000 per hectare, while a Rasteau could cost €90,000. A solid investment, a Châteauneuf-du-Pape estate would go for more than €400,000 per hectare. ‘In this region, you can buy a little vineyard with a pretty house for between 1M€ and 1.5M€,’ José Canadas concludes. Provence has its fair share of fans too. ‘We are riding the crest of the rosé wave,’ exclaims Maurice Raveyre. ‘Ours are practically the best in the world and they sell very well on the foreign markets.’ And as Pierre Azur's Dominique Varé emphasises, ‘The reds are also worthy of the detour, with a quality close to that of Bordeaux wines.’ Sunshine, charming houses and fine vineyards are very attractive to investors. ‘These are businesspeople with money to spend and a keen interest in wine,’ explains Arnaud Courret from Blue Side Immobilier. Most of the demand is focused on the Côtes-de-Provence, Coteaux-d'Aix and Coteaux-Varois; prices for those range from €40,000 to €60,000 per hectare.

VARIATIONS IN VAL DE LOIRE

 ‘Here, Anjou is the most dynamic sector. Touraine is much less so due to the lack of sellers. Conversely, there are estates up for sale in Sologne but few takers,’ says Alain Paineau from Quatuor Vignobles (Vinea network). In Anjou, the average price per hectare for a Saumur appellation is €18,000, while a hectare of much sought-after Saumur-Champigny would cost €57,000. In Touraine, a Chinon estate would fetch a price of €22,000 per hectare, a Bourgueil appellation €20,000 and a Saint-Nicolas-de-Bourgueil somewhere in the region of €40,000. Sauvignon and Muscadet are more reasonably priced, at around €12,000 to €15,000 per hectare. This is due to a perception of lower quality despite considerable efforts since 2010. In Val de Loire, prices for estates with buildings on them are kept fairly confidential. ‘Unlike Bordeaux, we have not been able to maintain our châteaux,’ Alain Paineau adds. ‘But there are some opportunities nevertheless. Like this little château: 350m2, flanked by 20 hectares of working vineyard, on offer for between 2M€ and 3M€. Or this 250m2 manor house with 17 hectares of land, 12 of which are planted with vines, selling at between 1M€ and 1.5M€.’