Vineyard prices are falling in many parts of the world, but surprisingly staying stable or even going up in some popular areas. That's the main takeaway from the just-released Wealth Report 2025 by Knight Frank, a global real estate company based in London.
This is happening even though wine production has gone down by 20% in the last 20 years, and global wine drinking has dropped by 12% since 2007. The report basically shows that how vineyard prices change depends on both what's happening globally and what's happening locally.
Many regions where winemakers sell their production to a few large wineries have experienced a decline in land values. For example, in New Zealand's Marlborough region, vineyard prices fell by up to 33% in 2024. Significant shifts occurred in Australia, which was affected by the recent Chinese import ban. In South Australia's Riverland region, prices decreased by up to 50%, while in the Barossa Valley, where higher-quality wines are produced, they only fell by 10%. A region like California's Carneros suffered from changing drinking habits, with prices dropping by 15%. A similar situation applies to the Côtes du Rhône, with a 10% decrease.
However, many regions have withstood the global trend. Napa Valley, Burgundy, as well as Rioja and the Côtes de Provence, have managed to keep their land prices stable thanks to successful premiumization strategies. Champagne even shows a slight increase of 2%. The Italian regions of Chianti, Bolgheri, and Brunello recorded growth of 3 to 5%. In Barolo (up 5%), the highest average price worldwide was noted at $2.08m (€1.92m) per hectare (ahead of Margaux at €1.15m and Napa Valley at €1.1m).
Overall, regions well-developed for wine tourism and infrastructure have been able to counter the general trend. Regions that produce popular white wines and benefit from climate change are also experiencing positive value development (Stellenbosch in South Africa: +3%, Loire: +5%). In Essex, East England, where still wines are increasingly produced, vineyard prices even rose by a peak of 20%.
Elsewhere, buyers have rewarded regional political developments, such as in Argentina. In some agriculturally favored zones, local farmers are switching to high-priced fruit and vegetable crops, which also keeps land prices stable. Examples include the Colchagua Valley (cherries), Mendoza in Argentina (garlic), and Southern France (olive trees). In Spain, a strong emotional attachment to land often owned by families for generations is preventing current sales. Regional brokers suggest that land prices would only fall due to forced sales, which are not occurring at present. "But that could change," the report stated. SP
