Shopping for a winery in Burgundy’s Côte-d’Or division was by no means costlier than in 2024, as wine actual property costs there shrugged off an business malaise that weighed on property values elsewhere in France.
The typical value for a hectare of vines in Côte-d’Or, residence to the Côte de Nuits and Côte de Beaune appellations that produce a number of the world’s priciest bottles, rose 11% final yr, in keeping with French rural property company Groupe Safer. The worth per hectare rose for the twenty eighth yr in a row, rising above €1m for the primary time.
Burgundy wine actual property stays extremely coveted, notably the restricted provide of grand cru and premier cru plots in Côte-d’Or, in keeping with Safer. That contrasts with Bordeaux, the place winery costs in a number of the most prestigious rising areas fell after a number of years resisting a broader hunch within the area.
‘What is definite is that the Côte d’Or market is structurally very slender, and that costs are rising as a result of these are wine appellations that stay extremely wanted and for which there’s nonetheless a number of demand,’ stated Loïc Jégouzo, accountable for research at Safer, at a press convention in Paris final Thursday.
Throughout France, the typical value for a hectare of vines with a protected designation of origin fell 1.1% to €176,400, the company reported. The year-earlier per-hectare worth was restated after an adjustment to the rising space, in keeping with Safer.
The variety of winery transactions fell 1.4% final yr, primarily as a result of fewer offers within the Loire Valley and the Cognac area, although the general space of vines that modified fingers was steady at 16,000ha. The whole transaction worth slipped 4.8% to €1.1bn, remaining above €1bn for a fourth yr, in keeping with Safer.
Amongst final yr’s offers in Burgundy, LVMH in September acquired 1.3ha of vines in Aloxe-Corton in Côte d’Or from the Poisot household for €15.5m, a transaction first reported by native newspaper Le Bien Public. In the meantime, Alibaba co-founder Joe Tsai was a part of a gaggle that acquired wine property in Gevrey-Chambertin.
The Côte d’Or vineyards cowl about 9,500ha, lower than a tenth of the Bordeaux space, and the marketplace for vines stays ‘very aggressive’, in keeping with Safer.
Some Burgundy winemakers have been struggling to maintain their vineyards within the household, as rising costs resulted in punishing inheritance taxes. French lawmakers in February voted to decrease the prices of passing on wine property by increasing a tax exemption for land transfers, after lobbying by France’s nationwide winemakers’ confederation.
Common costs for a hectare of Burgundy premier cru white wine property planted with Chardonnay elevated 13% to €2.55m, whereas for premier cru planted with Pinot Noir to provide reds, the worth rose 9.5% to €1.04m a hectare.
In the meantime, costs in Bordeaux fell for a 3rd yr, slumping 18% to a median €112,500 per hectare. Along with the decline for much less prestigious vineyards, values for high-end names equivalent to Pauillac and Margaux slipped after a number of years of stability.
In Pauillac, a hectare of vines bought for €2.5m in 2024, falling 17% from a yr earlier, whereas costs in Margaux declined 7% to €1.4m per hectare.
Value declines are ‘not solely affecting Bordeaux and Côtes de Bordeaux appellations, however now embody your complete winery,’’ Jégouzo stated. He stated southwestern France was already going through a disaster in purple wine manufacturing, and hostile climate in 2024 ‘added to an already fragile scenario’ impacting the money circulation of many growers and inflicting some to exit of enterprise.
Some vineyards on the market in Bordeaux failed to seek out patrons altogether, in keeping with Jégouzo.
In Champagne, which nonetheless holds the crown as France’s most costly wine area, the typical value for a hectare of vines rose 1.7% to €1.12m. Winery values fell in most different areas, together with Languedoc-Roussillon and the Rhône and Loire valleys.
