A lifelong dream for some, a genuine professional project for others, acquiring a wine estate attracts many buyers in search of meaning and the French art of living. Since the beginning of the wine crisis, twice as many French people have decided to buy a wine estate. Rooted in French tradition, know-how and gastronomy, vineyards play an essential role in agricultural production. Treat yourself to a sensory journey through the vines and taste the flavors of viticulture.
Winegrowing investment: the terroir within wine’s reach
A strong symbol of the ancestral heritage of the French, vines are grown on 1.4% of the national territory. Mercure Forbes Global Properties has been observing this trend for some years now. This craze is confirmed by an increase in demand from 25% to 50%.
Investing in vineyards is a safe and profitable way to diversify your assets. A safe investment par excellence, it does, however, require knowledge of viticulture, but not only that. Indeed, before setting out in search of vineyards and estates, it’s important to determine the potential of the property and its specific features.
Conquering land: a buyer for every project
Generally speaking, there are several types of buyer. There’s the wine professional (winemaker, producer, operator…) who wants to buy an estate in order to set up there and, why not, create his or
her own business. There are also people with a passion for wine who want to make a career change by investing in a beautiful living environment. Finally, some people are looking for a new place to live and unwittingly find themselves confronted by the natural charm of wine estates, seduced by their buildings, architecture and surroundings.
In some cases, a farm owner may make land or buildings available to a farmer in return for rent (fermage) or crop sharing (métayage). Whatever the project, whether a new winegrower or an experienced investor, motivations may differ, but to ensure the solvency of the project, it is essential to manage the winegrowing project as a well-informed entrepreneur.
How to choose the right wine estate?
Purchasers invest not only in a property, but also in a place to live, a terroir, a tradition, a family, and must be fully committed to ensuring the profitability of their project.
Whether they’re buying on a whim, looking to make a profit or changing career paths, today’s winegrowing properties are more than just wine production.
While some choose to transform the estate into cottage, bed and breakfast or unusual accommodation, others are targeting the wine tourism market. Before buying a wine estate, it’s essential to assess the value and potential of the property, to draw up a realistic business forecast, to analyze the market and its specific features, and to have a sound knowledge of both winemaking and estate management.
“Winemaking is a wonderful, multi-faceted profession, from the land to marketing! But it’s a demanding job that owes a lot to nature. It’s a combination of agriculture, craftsmanship and industry. Wine conveys many values, it’s a culture in itself. It’s important to understand the buyer’s objectives and level of knowledge. If they see the purchase as a dream, we need to bring them back to reality. Winegrowing is a fine business, but it’s still a business. Valuation is based on realities: the price of land, woods and vines in the area concerned, the price of the buildings, the price of equipment, the quality of the teams, the distribution and marketing networks“, says Yves d’Amécourt, wine expert at Mercure Forbes Global Properties Bordeaux.
To this end, here are a few points to consider if you wish to acquire an estate:
– Quality of buildings, installations and equipment: effluent treatment, electrical installations, chloroanisoles, safety standards, town planning, major works, compliance with environmental standards, technical regulations relating to each appellation…
– Diagnostics: DPE, lead poisoning, asbestos, termites, wood-eating insects…
– Access to water: water potability
– Team skills,
– Wine quality and stocks
– Vineyard analysis and soil type: grape varieties, planted area, sanitary conditions, PLU…
– Potential for wine tourism and development,
– Regulatory and land aspects: certified document, label, planting density, respect for grape varieties, agricultural land…
– Customer database,
– Property location: proximity, accessibility, views, amenities…
– Distribution network and sales channels,
– The reputation of the existing brand and its cuvées.
Negative factors can also be taken into account: nuisance, risk zone, fragmentation, climate, major works….
Harvesting profitability: how to grow your vineyard?
The profitability of a vineyard ranges from 1.5% to 5% per year. By adopting the right operating strategies, wine estates offer one of the best returns per hectare compared with non-agricultural properties. Well-maintained, they do not depreciate in value, and benefit from significant advantages, notably in terms of exemption from inheritance tax and IFI. If the estate includes a manor house, farmhouse, farmhouse or château, its value increases.
Nevertheless, it is essential to anticipate the ongoing reinvestment required by the operation and its upkeep: changing equipment, uprooting vines and replanting, renewing barrels, putting wine into production and labeling bottles…
“To amortize operating costs, it is nevertheless possible to take advantage of financial aid to renovate buildings or replace equipment. Other forms of support can also be obtained as part of the transition to an eco-responsible or organic operation, such as those offered by FranceAgriMer. Aid is also available for planting and grubbing-up, and for exporting wines. However, it’s when the property is resold that the greatest capital gains are realized. They often exceed the entire investment!” explains Vincent Balansa, wine specialist with Mercure Forbes Global Properties.
Luxury and terroir: our wine estates to discover
Near Carcassonne, this wine estate classified as an organic château is divided into 7 lots. It includes dwellings, former stables converted into an inn, a tasting room, a semi-buried cellar and vat room (8351TS)
Near Cordes-sur-Ciel and Albi, this beautifully renovated 19th-century château comprises 20ha of HVE-certified vines in production, with the possibility of increasing the surface area to around 35ha with tenant farming. The property includes a central dwelling, an outbuilding, a former barn used as offices and a swimming pool (8529TS).
Located in Vic-en-Bigorre, this 23-hectare organic AB winegrowing estate boasts south-facing hillside vines, cellars, vats and all the operating equipment needed to be up and running as soon as you arrive. (900856BXTS)
Currently undergoing organic certification, this winegrowing estate located between Blayais and Bourgeais offers several outbuildings and owns over 25ha in the Côtes de Bourg and Blaye-Côtes de Bordeaux appellations. The estate is set in 4000m² of parkland (900755BX)
