Why just stock up on wine for Christmas, when you could own an entire vineyard?
- British buyers continue to lead hunt for vineyards (FrenchEntrée)
- Bordeaux region is most popular region in France to buy a vineyard
- Vineyards are available for every budget, from €360,000 to €50,000,000
New figures from premium French property agents FrenchEntrée have revealed that UK buyers just can’t get enough when it comes to French vineyards.
Over the past six months British buyers have topped the table of those looking to snap up vineyards, accounting for 44% of all enquiries through FrenchEntrée. They were followed by enquiries from the US (18%), China (8%) and Russia (4%). (While FrenchEntrée specialises in Anglophone buyers, these latter two nationalities both play key roles in the overall vineyard market.)
“Demand for vineyards has never dropped – quite the opposite. We’ve seen demand rise consistently over many years and there are several reasons for this. Tax-wise, France offers a number of advantages, particularly when you take into account inheritance tax. As many of those who purchase a vineyard are retirees looking for a better lifestyle, this can play an important role in their purchasing decisions.”
Annick Dauchy, Property Business Development Manager, FrenchEntrée
According to FrenchEntrée, vineyards are also popular with corporate buyers looking to add to their portfolio. A few million euros is apparently a small price to pay for the prestige of owning a vineyard in the South of France.
Of course, you don’t need millions to pick up a vineyard. The properties attracting enquiries through FrenchEntrée between May and October 2017 ranged in value from €360,000 to €50 million.
Bordeaux is the most popular area for those seeking their own slice of traditional French countryside, with 35% of enquirers looking to buy vineyards there. The region offers the highest supply of vineyards and can thus cater to a wider range of budgets and tastes than other areas.
Provence follows, with 25% of enquiries, then Nouvelle Aquitaine (20% – excluding Bordeaux) and Languedoc Roussillon (16%). While the absence of Burgundy from the figures may be surprising, this is due to the difficulties that buyers face obtaining vineyards in this region. Land and properties tend to be handed down through the generations, leaving the area all but closed to foreign buyers.
“Much of the time, the decision on which area to buy in is led by budget. You can still pick up a vineyard in the Bordeaux or Languedoc area for less than €2 million. The quantity of vineyards available in France means that buyers have plenty of choice – there’s a property to suit each buyer’s individual circumstances.”
Annick Dauchy, Property Business Development Manager, FrenchEntrée
The majority of new vineyard owners tend to know little about caring for vines or making wine. Their experience usually starts at the point the cork comes out of the bottle. However, with many sellers happy to stay on and coach the new owners, this is rarely a problem. Employee teams tend to stay on as well, giving the newly installed owners instant access to knowledgeable workers who can assist them in their endeavour.
When it comes to buying, vineyards tend to be a cash market. 81% of prospective buyers coming to FrenchEntrée in the past six months planned to fund their purchase with cash. The fact that it’s almost impossible to get a mortgage for a vineyard is the main factor behind this. Banks are hesitant to lend on vineyards as they view them as a business investment. As such, buyers with no experience or proven track record of running vineyards soon find themselves out on a limb. Of course, it is possible to treat a vineyard as an investment, but the money is usually made by buying, running the estate well for several years as part of a strategic marketing plan, and then selling it on for a profit.
Vineyards on the market:
Those with plenty to spend might enjoy this €13 million 19th century vineyard with chateau in Montpellier, in the Languedoc-Roussillon region. The three-storey chateau comes with 165 hectares, vaulted reception rooms, its own swimming pool and a Roman chapel from the 9th/10th century.
For those with a more modest budget, €400,000 is sufficient to pick up a characterful, seven-bedroom home with surrounding vineyard and two on-site cottages, which together provide a further three bedrooms. With just three hectares of vines, this is a perfect ‘starter’ vineyard for those looking to get a taste of the lifestyle and understand what’s involved (most vineyards have at least 15 hectares of vines).
Buyers somewhere between those two price brackets have plenty of options. For €3.4 million, they can enjoy a magnificent 18th century vineyard with chateau set in the heart of the Rhône valley.
For further information, contact FrenchEntrée on +44 (0)1225 463752 or propertysales@frenchentree.com. You can also visit https://www.frenchentree.com/property-for-sale/.