A single hectare of a Burgundy grand cru vineyard could have cost up to 14 million euros last year, according to the latest report from France's land agency.
Top-end prices for Burgundy grand cru vineyards in the Côte-d’Or have doubled in the past decade, from an estimated cost of around seven million euros in 2008 – or 7.5m euros at ‘constant prices’ – to just under 14 million euros in 2017, according to French land agency Safer.
The increase follows several years of soaring global demand for wines from the most prized Burgundy ‘climats’, coupled with high profile vineyard buyouts by wealthy investors in recent years.
There is a wide variation in valuation, however. Safer said that grands crus prices started at an estimated 2.75 million euros per hectare in 2017.
Some estate agents believe that Safer figures can be too cautious, although it is hard to know for sure.
When Francois Pinault, the owner of Bordeaux first growth Chateau Latour, bought Clos de Tart in Morey-St-Denis last year it was estimated by French business newspaper Challenges that the deal was valued at more than 200 million euros. Clos de Tart has 7.53 hectares of vines.
A fee for the deal was never formally disclosed, although it was the latest of several major investments in the region.
American billionaire Stan Kroenke, who also owns Arsenal football club, purchased Bonneau du Martray in 2017.
Prior to that, luxury goods group LVMH bought Clos des Lambrays.
‘The era of corporate and billionaire ownership in Burgundy has begun,’ wrote Decanter columnist Andrew Jefford earlier this year.
There have been concerns in the region for several years about what rising vineyard prices could mean for family-owned producers seeking to navigate a path through French land succession laws.
While Burgundy grand cru prices have soared, there remains a significant disparity between the top of the region’s ‘climat’ pyramid and the base.
One hectare of vineyard land in the regional Burgundy appellation had a top price of 70,500 euros in 2017 – up from around 45,000 euros 10 years ago – and a low price of 12,700 euros, show Safer figures.
Published online this month for Premium members
Published in 2014