13th June 2022
The market for the sale of vineyards in France is a substantial one. Last year, SAFER, the French rural land agency, recorded nearly 10,000 sales (+15%), totaling 17,400 hectares and representing €1.1 billion (+19 and +27%).
Nevertheless, even though such figures confirm the general attractiveness of French vineyards to investors and buyers, it is not a uniform picture amongst the different appellations…
Nevertheless, even though such figures confirm the general attractiveness of French vineyards to investors and buyers, it is not a uniform picture amongst the different appellations.
The average price of Appellation d’Origine Protégée (AOP) vines fell by -1.7% to €147,900/hectare, but if the figures exclude the Champagne appellation, AOP prices increased on average by +2.4% to €80,000, reflecting a decline (-6%) for the third year in succession in a not overdue correction in the value of Champagne vines.
SAFER considers that the contraction of prices in Champagne was not felt uniformly, with Grands Crus and Premiers Crus considered as safe havens and only slightly impacted.
Beyond AOP vines, there was an increase in price of IGP-Vin de Pays vineyards of +3.4%, to €15,000/ha.
The table below shows the trend in prices since 1991.
Among the AOC vineyards gaining in value, the Languedoc region performed particularly well (+2.5%), notably with the Hérault appellations such as Pic Saint-Loup, Picpoul de Pinet, and Terrasses du Larzac.
It was a similar picture in the Rhone (+2.4%), particularly in AOC Gigondas and Crozes-Hermitage, and in Provence where, according to SAFER, the commercial success of the Côtes de Provence rosés "generates strong land pressure on the area."
On the other side of the spectrum, in Alsace, "prices are reaching historically low levels" (-5.6%), and that "the cash flows of the farms remain fragile." Once again, however, Grands Crus are much less impacted by the general decline than vines located in generic appellations.
The situation is even more divided in Bordeaux, where the price of prestigious appellations (Pauillac, Saint-Julien) and organic farming plots rose, whilst prices for generic appellations (Bordeaux Rouge etc) fell for the third year running.
In Bergerac, SAFER state that "the future of several farms is uncertain", with the possibility that some farms will need to convert to other forms of production.
In Beaujolais, whilst local buyers are less active, the appellation remains attractive to buyers outside the wine region, with prices up +4%.
Similarly in the South-West, "the vine market is becoming dynamic again, with signs of a revival of interest in the vines of the Cahors AOP.
It is the same in Muscadet , in the Loire, where "there is a growing interest of non-local buyers for vineyards at an attractive price and on a reasonable scale. As a result, land prices are holding steady."
More generally in the Loire Valley, SAFER consider that "following the health crisis, viticulture attracts many buyers in search of another life. They are interested in the Loire Valley whose vineyards are rich in diversity." Nevertheles, they qualify their analysis by stating that "the economic potential of wine estates is currently limited given the climatic hazards suffered over the last five years (frost, hail ...)."
Finally in Burgundy, with the frost and the small yields of the 2021 vintage, "the Chablisian land market remains very closed, with only 33 sales for a total area of 15 hectares." Ditto in the Mâconnais. And the trend is even more obvious in Côte d'Or where, "The pressure on vineyard land is still increasing in the department in 2021 despite the low harvests, particularly due to the April frost. Vineyard land is still highly sought after by professionals but also by investors given its quality, but also its rarity and prestige," notes SAFER.
The image below shows average prices for each appellation, ranging from under €10K/ha to over €1million/ha.
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