Price of Vineyards Around the World

Tucked away behind lush vines and rolling hills lies a world where luxury meets business opportunity –the world of wine. 

While you may have visited a vineyard or two, have you ever considered owning one?

For those in the know, it’s not just about the wine – sure, having endless access to your own supply is a plus, but more than that, owning a vineyard is a mark of prestige.

But just how lucrative are vineyards as a business venture and what is the average price of vineyards around the world?

Unfortunately, 2022 inflationary pressures have led to rising prices and a decrease in the total vineyard surface area worldwide, which has led to low production volumes (although extreme climate conditions have also contributed to these issues).

That said, expansions in the vineyard landscape have been reported in Italy, Germany, Greece and other regions worldwide, including parts of Australia.

Ultimately, while operating costs and the price of wine itself have increased, the industry is stabilising and presents a few great opportunities to invest – as long as you know where and what to look for.

From Bordeaux to the rolling hills of New Zealand, each vineyard has its own unique character, both in flavour and investment potential.

Understanding these nuances is important if you want to expand your investment portfolio wisely.

Can You Actually Buy a Vineyard?

Admittedly, it’s an uncommon investment choice but, yes, you can buy a vineyard so long as:

• You have the funds
• You can legally purchase the property
• You can operate the business in the country you are interested in.

It’s like any other property or business purchase. But how does one actually buy a vineyard – what’s the process?

The first step is to figure out what you’re going to do with the vineyard once you’ve actually bought it.

Are you envisioning buying a sprawling estate with a grand villa or a charming vineyard focused solely on wine production?

Some estates offer luxurious on-site villas that are part of the business, which you can rent out to guests or use for events.

Alternatively, you might opt for a vineyard without residential properties, focusing purely on the business and craft of winemaking. This approach allows for greater investment in the viticulture process and expansion of wine production capabilities.

Regardless of which kind of vineyard you ultimately choose, buying a vineyard is like most other investments.

It involves navigating legal frameworks, understanding local regulations and assessing soil quality and climate conditions – all essential for producing exceptional wine.

Most Popular Places to Buy Wine Vineyards

Like investing in any other type of property, location is everything when buying a vineyard.

While the ‘best’ location depends on what your goals with the investment are (successful wine production and growth, for example, versus purchasing a vineyard mostly for visitors to enjoy), there are a few popular places you can investigate first.

As the world’s leading wine producer, France is a natural choice. In 2023 alone, year-on-year wine production increased by 4.4%.

With its esteemed reputation and consistent demand, Bordeaux leads the list of popular places to buy wine vineyards, offering a stable investment for the discerning buyer. 

However, there are plenty of other regions within France which price vineyards differently, and more competitively, than Bordeaux, including the much-sought Loire Valley and Rhône Valley.

If France – a magnum of complexities and tax implications when it comes to purchasing property or land – isn’t your favoured tipple, then Tuscany, Italy, provides an impressive alternative filled with picturesque landscapes and profitable ventures. 

Its wines have long captured global attention and its post-pandemic tourism industry is thriving, making it a wise choice for those seeking both aesthetic and economic satisfaction – important whether you want to live at the vineyard or visit frequently.

Outside of Europe, Napa Valley follows suit, famed for its strong tourism sector, ensuring robust financial returns. 

In 2023, visitors to Napa Valley spent US$2.5 billion supporting local businesses – your new vineyard could be one of them.

Don’t overlook New Zealand, either. Its burgeoning reputation hints at promising future returns, particularly for those willing to capitalise on emerging markets. Plus, the wine industry in NZ is diverse and supportive of female investors.

When narrowing your search, focus on local market conditions, regional climate and international demand to make an informed decision.

Price of Vineyards Around the World

You might automatically think of Spain when you think of top wine-producing countries and the vineyards that drive those profits and exports. 

There are several great vineyard investment opportunities in the Iberian country, where you can expect to have to pay tens of millions of dollars for a decent plot of fertile land and a nice villa.

Prices in France and Italy are quickly catching up, but to help you expand your horizons and look past the obvious, Nomad Capitalist has harvested key information about the average price of wine vineyards around the world outside of Spain.

France

Vineyard prices in France vary widely, driven by appellation prestige and vine health. 

In Burgundy’s Côte d’Or, grand cru vineyards can reach €6.765 million per hectare, reflecting high demand.

Champagne vineyards, representing 52% of the total vineyard value, also command significant prices, with the Côte des Blancs at €1.6 million per hectare. Bordeaux is another key region, with Pauillac reaching €2.8 million per hectare.

For those uninterested in spending millions, there are excellent vineyards options in Languedoc for around €17,500 per hectare though prices in more established and desirable sub-regions such as Corbieres or Minervois, will cost significant more. 

Portugal

Portugal offers a more accessible entry point for vineyard investors, with land prices significantly lower than in France.

In some desirable wine-growing areas, such as Douro or Alentejo, vineyard prices start at approximately €400,000 (total, not per hectare) but substantially more if you include premises and equipment.

However, you can find larger, more exclusive estates for sale in the DOC Vinhos Verdes and other neighbouring regions for upwards of €10 to €25 million.

Italy

In Italy, vineyard prices reflect the prestige of the region but aren’t quite as expensive as what you find in France.

Across Italy, the starting price for vineyards is approximately €30,000 per hectare in somewhere like Sicily but that price scales as you look at more renowned regions.

For example, vineyards can cost around €170,000 per hectare in the Chianti Classico area of Tuscany, with premium plots reaching up to €300,000 or over €1,000,000 in Piedmont. 

For those more focused on the property value rather than the business itself, prices in Tuscany can be significant, with a cottage and two to three hectares of vines potentially ranging from €2 million to €3 million. 

For larger estates, such as those with 6.5 hectares of DOCG vines, prices can reach around €6.2 million.

California

California, particularly Napa Valley and Sonoma, is synonymous with premium wine production in the United States. 

Vineyard prices are notably high, reflecting the region’s reputation and the quality of its wines. The average price per acre can reach millions, making it one of the most expensive areas for vineyard investments worldwide.

Land companies have recently reported that the average price per acre across the state is US$150,000 – a range that spans from US$50,000 to US$1,000,000 per acre. 

Keep in mind that an acre is about half the size of a hectare, meaning that the average equals just over US$300,000 per hectare.

So, the price of buying a vineyard in California might be above what you can find in Europe or South America – depending on where you buy. 

However, the strong demand for Californian wines both domestically and internationally, along with the strong tourist appeal, make it an interesting option for bigger financial returns.

New Zealand

While still more affordable than some European wine regions, New Zealand’s vineyard prices have recently increased, particularly in the Marlborough region. 

In 2023, prices rose to NZD400,000 per hectare (just over €220,000), an incredible 60% increase from the previous year’s rate of NZD270,000 (just over €150,000).

This escalation is influenced by factors such as yield, location, water availability and whether the fruit is free from contractual obligations – all things you would need to familiarise yourself with if investing in a vineyard there.

Despite rising costs, investing in this region of the wine world is an interesting choice, especially if you want to tap into an emerging market. The country’s focus on high-quality production and sustainable practices add to the allure for most.

Argentina

As one of the most popular wine regions not just in South America but worldwide, the price of vineyards in Argentina isn’t as cheap as you might initially think.

However, there are several attractive opportunities, especially in the esteemed Valle de Uco region. 

With high-quality soil and favourable climate conditions, Valle de Uco is ideal for producing premium varieties like Malbec and Chardonnay. Here, vineyard plots are priced at around US$50,000 per hectare. 

After the initial two-year period, which is covered in the purchase price, you can expect additional maintenance fees of approximately US$2,550 per year per hectare. 

Our one word of warning for this region?

While the region’s vineyards promise substantial returns, factors such as political stability can influence investment outcomes.

Hidden Gems

Colombia

Bogota’s culinary scene is full of surprises. During a recent visit, Nomad Capitalist founder, Andrew Henderson, sampled local Colombian liquors and regional wines at the Wine Store in Park 93.

Georgia

Georgia is a gorgeous nation in Eastern Europe (not to be confused with the state in the US by the same name).

Explore the charming city of Tbilisi and learn all about the nation’s excellent wine flavours with Nomad Capitalist’s founder, Andrew Henderson, in our latest ‘Live Like A King’ series. 

Costs to Consider When Purchasing a Vineyard

When calculating the average cost of vineyards, it’s important to consider the various costs that extend beyond the initial buying price. 

Upkeep is a significant ongoing expense, encompassing labour, equipment and maintenance of the vines to ensure healthy yields. 

Additionally, property taxes and, depending on the location, federal taxes can substantially increase the annual financial commitments.

Land costs can vary greatly depending on the region’s prestige and local real estate market, affecting both the purchase price and long-term investment value. 

Other somewhat small but important considerations include water rights or irrigation costs, which are essential for the vineyard’s sustainability, especially in regions facing water scarcity.

Moreover, you’ll likely need to invest in property and crop protection insurance. This is necessary to protect your investment and yields against potential natural disasters or other unforeseen events.

The bottom line is that these factors collectively contribute to the comprehensive cost of vineyard ownership.

So, familiarise yourself with these to assess the long-term financial implications of owning a vineyard before investing.

Is a Vineyard a Good Investment?

It really depends on what you’re comparing the investment to and what your long-term goals are.

In one sense, investing in vineyards offers unique benefits compared to standalone properties like villas. 

Vineyards, especially those classified as AOP [Protected Designation of Origin], often hold greater prestige and potential for value appreciation due to their quality designation which, in turn, can lead to higher returns if the vineyard is managed effectively. 

However, none of that applies if you don’t find and invest in the right type of vineyard to align with your financial goals. 

Just as with any investment, thorough research and due diligence are essential to mitigate risks and maximise profitability. 

Our suggestion is to work to understand market trends first. Then, learn about the specific characteristics of AOP vineyards, as they are likely to be where your money will be best spent.

Expanding Your Investment Horizons

Understanding the average price of wine vineyards worldwide is one of many factors to consider if you are interested in expanding your investment portfolio to include this type of property and business.

Others include market trends, maintenance, ongoing marketing costs to commercialise the wine brand and more.

Vineyards have the potential for significant appreciation and unique returns. However, the global wine market is currently experiencing declines, meaning that even if a vineyard is the right investment choice for you, it might not be the right choice for you right now.

If you want to enhance your investment strategy, we can help. 

At Nomad Capitalist, we offer expert guidance in diversifying your portfolio, safeguarding your assets and crafting a life abroad tailored to your aspirations. 

Ready to take the next step in your investment journey? Work with us to expand your investment horizons and build a life tailored to your needs and goals.