Value of top Burgundy vineyards soars
PRICES FOR TOP-END Burgundy grand cru vineyards in the Côte d’Or have doubled in the past decade, from an estimated €7 million in 2008 to just under €14 million 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.
However, there is a wide variation in valuation; safer said the prices of grands crus started at an estimated €2.75 million per hectare in 2017.
When françois pinault, the owner of Bordeaux first growth Château Latour, bought Clos de Tart in Morey-st-Denis last year, the value of the deal was estimated by french business newspaper Challenges at more than €200 million. Clos de Tart has 7.53ha of vines.
An accurate figure for the value of 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, with its vines on the hill of Corton, in 2017. prior to that, luxury goods group LVMH bought Clos des Lambrays, also situated in Morey-st-Denis.
‘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 the implications of rising vineyard prices for family-owned estates seeking to navigate a path through french land succession laws.
While Burgundy grand cru vineyard prices have soared, there remains a significant disparity between the top of the region’s climat pyramid and the base. A single hectare of vineyard land in the regional Burgundy appellation had a top price of €70,500 in 2017 – up from about €45,000 10 years ago – and a low price of €12,700, figures from safer show.
The D122 road links some of the most prestigious vineyards in Burgundy