The price of vineyards continues to climb in France in 2019

In 2019, the number of vineyard transactions rose significantly to 9,200 (up 5% on 2018) with a total of 18,300 hectares changing hands (+9%) worth 987 million euros (+17%)”, outlined analyst Loïc Jégouzo from the National Federation of Land Development and Rural Establishment Companies (FNSAFER), during a press videoconference on 28 May. He immediately qualified the overall trend, detailing the impact of major one-off transactions, but above all local structural differences: “In each wine region, the most prestigious appellations are driving up prices (Burgundy, Bordeaux, Côtes du Rhône growths, etc.). For the first time, prices have fallen in Champagne (€1.1 million/ha, 2%) and for red Bordeaux (€15,000 /ha, -9%). Diminished appeal among consumers in France and in export markets is having an impact on land prices”.

While the price of a hectare of appellation vines remained unchanged at 148,100 euros in 2019 (+0.5% compared to 2018), it actually improved if Champagne is removed from the equation: +3% to €74,900 /ha. Aside from South-West France (-2 %, with notable decreases in Cahors and Madiran), all other appellation vineyards are up (+8 % in Corsica, +4 % in Burgundy-Beaujolais-Jura-Savoy, +3 % in the Rhone Valley-Provence, +3 % in Bordeaux-Aquitaine, +2 % in Alsace, +2 % in Languedoc-Roussillon…). One noteworthy increase is for appellation vines for brandy (+6 % to €51,800 /ha), particularly the price of Cognac which broke through the €50,000/ha barrier on average (+4 % for Charente to €52,400 /ha and +8 % in Charente-Maritime to €51,400 /ha). Outside of appellation areas, prices have risen by +1.4 % (to €14,400 /ha), reflecting strong growth in Languedoc, especially the good performance of rosé vineyards, pointed out Jégouzo.

“SAFER agencies are reporting that business is currently at a standstill. People are eyeing the future with apprehension”, said Emmanuel Hyest.