Lifestyle vineyards are growing in number and, in some parts of the world, are providing a strong investment return.
Knight Frank’s new Global Vineyard Index tracks the performance of lifestyle vineyards – which we define as vineyards of five hectares or more and which are neither hobby purchases nor large commercial setups but produce sufficient output to sell beyond just family and friends. These lifestyle purchases are becoming popular alternative investment choices for buyers in both the Northern and Southern Hemisphere.
Overall, the price of lifestyle vineyards rose by 6.8% in the year to June 2013 but the Mendoza region in Argentina and Tuscany in Italy were the top performers, recording annual price growth of 25% and 20% respectively.
Vineyards in ‘new world’ locations such as Argentina, New Zealand and Chile have recorded some of the strongest price increases. While the established markets of France, Italy and Spain have, in most parts, seen respectable price growth, the availability of ‘lifestyle’ size vineyards is limited given the dominance of commercial producers.
Countries such as Spain and Portugal have, as a result of the global economic crisis, seen the number of vineyards changing hands decline but prices have remained relatively flat.
The index also looks in detail at just how influential Chinese investors are in high value markets such as Bordeaux. According to Alexander Hall of Vineyard Intelligence the French still dominate the Bordeaux market but Chinese buyers have increased in number. In the Gironde area Chinese buyers were responsible for buying just one wine estate in 2008 but by 2012 this had increased to 27.
