Investing in wine real estate in France has been rewarding business as prices per hectare has tripled in the last twenty years and for the best AOC-rated land, prices have risen at a rate of more than nine per cent annually – a five-fold increase. As with any investment, skilful selection among prospects is essential: of the more than 8’000 properties in Bordeaux alone, only a fraction have true potential for value creation of the land, winery and marketing of the end-product.
Quality is dependent on a number of factors, but a good vineyard and a skilled winemaker are essential starting points. At the premium end, they are in short supply and this is why careful selection of wine real estate and its management can be a very attractive long term investment. Wine production is becoming increasingly dynamic and the injection of capital can be highly rewarding for consumer, winemaker and investor alike. With the appropriate expertise, premium winemaking is worlds apart from cash-draining volume viticulture. Vineyard funds provide both the capital and the know-how.