The SAFER Aquitaine Atlantique have released their annual review of the rural property market and analysis of transactions in 2017.
Almost 2.6% of the total surface area of the Bordeaux vineyard changed hands in 2017, with 3,208 hectares sold, a 9% increase on 2016. The total number of transactions increased from 708 in 2016 to 723 in 2017, although this was still below the figure of 819 transactions in 2015. The value of these transactions also increased, from 249 million Euros in 2016 to 277 million Euros in 2017, just below the 282 million Euros registered in 2015. The latter figure was impacted by a number of transactions in the most prestigious appellations, with just two transactions (in Pauillac and Saint-Estèphe) with a total value of 147 million Euros.
The following tables and charts show the breakdown of prices per hectare by appellation:
The SAFER made the following observations with regard to the different appellations:
AOC Bordeaux – Generic AOC Bordeaux vineyards, which represent approximately 50% of the entire area, maintained an average price of 16,000 €/hectare, although the best parcels fetched 25,000 – 27,000 €/hectare. As in previous years, local growers remain primarily interested in parcels of vines without buildings. Sales of estates with attractive buildings were principally to those from outside the industry, frequently foreign buyers. Asian buyers continued to acquire properties at a similar rate to 2016, purchasing in the region of 15 properties.
Cotes de Bordeaux – A hectare of vines in Cadillac Cotes de Bordeaux or Blaye Cotes de Bordeaux continues to trade at an average of 18,000 Euros, while you need to spend on average 22,000 Euros to acquire a hectare of vines in Cotes de Bourg. The range of prices starts at 7,000 – 8,000 €/hectare for a parcel that needs replanting to 35,000 €/hectare for the best parcels.
Médoc – The prices of vineyards in the Médoc region continue to be supported by strong wine sales. The generic Médoc and Haut-Médoc appellations reaffirmed their strength in export markets and the communal appellations, which largely escaped the spring frost, maintained their good health in spite of a less successful vintage in 2017.
The average price for a hectare of vines in AOC Médoc continued to progress, reaching 55,000 Euros in 2017, while a hectare of vines in AOC Haut-Médoc cost on average 80,000 Euros, with the best parcels changing hands for 125,000 €/hectare.
The value of a hectare of Pauillac remained stable at around 2,000,000 Euros and the average price in Margaux and Saint-Julien remained at 1,200,000 €/hectare.
The price of vineyards in Saint-Estèphe continues to increase, largely driven by the lack of opportunities in the neighboring communal appellations of Margaux, Saint-Julien and Pauillac. Prices vary significantly, according to the quality of the terroir, with the best parcels on gravel soils changing hands for 900,000 – 1,000,000 €/hectare, while parcels situated on the coldest clay soils sell for around 350,000 €/hectare.
Graves – The increase in interest in this region continued in 2017. However, the increase in prices that should have followed was tempered by the area’s susceptibility to frost. The average price remained at around 30,000 €/hectare, with parcels on the best exposed sites reaching close to 50,000 €/hectare, while prices for the least sought-after areas were as low as 25,000 €/hectare.
Pessac-Léognan – Even if the average price remains at 450,000 €/hectare some sales of small parcels of vines were registered at close to 600,000 €/hectare.
Sauternes – The sale of generic Sauternes wines remains complicated. The creation of a co-operative might offer a solution but for the moment it has not affected vineyard prices, which continue to stagnate at 30,000 to 35,000 €/hectare. However, renovations to a number of Grand Cru Classé estates that have changed hands in recent years and various wine tourism initiatives are encouraging signs.
Pomerol – Transactions remain very rare in Pomerol and often involve very small, confidential parcels, which inevitably leads to higher prices. These increased from an average of 1,300,000 €/hectare in 2016 to 1,500,000 €/hectare in 2017. However, the value of parcels on the best terroirs can exceed 4,000,000 €/hectare.
Lalande de Pomerol – There is a little more supply in Lalande-de-Pomerol than in Pomerol, and the average price rose modestly, from 200,000 €/hectare in 2016 to 210,000 €/hectare in 2017.
Saint-Emilion – Coveted by both by local players and investors from outside the sector, the price of vines in Saint-Emilion continues to increase, on all types of terroir, with demand continuing to outstrip supply. The least sought after areas rarely change hands for under 250,000 €/hectare while the best sites on the plateau can sell for more than 3,000,000 €/hectare.
Saint-Emilion satellites – Vineyards situated in the Saint-Emilion satellites continue to sell from around 70,000 €/hectare in Puisseguin, up to 110,000 €/hectare in Montagne, with prices in the latter driven by a shortage of supply. Local investors consider that vineyards in Puisseguin and Lussac are likely to offer a better return on investment than Saint-Emilion vineyards.
Fronsac and Canon-Fronsac – 2017 saw the end of price increases in Fronsac and Canon-Fronsac. The average price in Fronsac is stable at approximately 30,000 €/hectare while the average in Canon-Fronsac is 100,000 €/hectare.