The price of Burgundy’s best wines won’t be falling anytime soon, as vineyard prices continue to track relentlessly upwards.
The average cost of buying Burgundy grand cru vineyard land, France’s most-expensive wine real estate, rose 5.3 percent in 2013, according to a report released this week by France’s Agriculture Ministry. Prices rose for the 17th straight year, averaging 4 million euros ($5.4 million) for a parcel of land that wouldn't even accommodate two football fields.
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“In Côte-d’Or, the prices continue to climb, no matter the appellation,” the report said. “Vineyard transactions are sharply down, which doesn’t stop prices from rising again.”
At grand cru level, land sold for between $2.7m and $12.9m a hectare (2.47 acres) in 2013, the ministry wrote. The average per-hectare price rose from $5.2m in 2012. It has been rising steadily since 1996, when a hectare was selling for a relatively paltry $1.66m.
In comparison, average vineyard prices in Bordeaux’s Pauillac region were $2.7m in 2012. In Champagne’s prestigious Côte des Blancs appellation, vineyard prices averaged $2.12m, a bargain by Burgundy’s standards.
At the next level down, Burgundy’s first-growth vineyards are also booming. The cost of a hectare of Chardonnay in Côte d’Or hit $1.7m last year, up from $1.66m. For premier cru vineyards planted to Pinot Noir, prices per hectare rose from an average of $680,000 to $718,000 in the past year.
Burgundy has 559 hectares of grand cru vineyards and 3326 hectares of first growths, jointly making up about 14 percent of the grape growing area, according to the region’s wine board, BIVB. Reds account for 56.8 percent of the grand cru area and 44.2 percent of first growths.
“In Burgundy, transactions of vineyards represent around 2 percent of the area of the agricultural real estate market and 33 percent of the value,” the report said.
Burgundy's top wines are among the most expensive in the world. The region accounts for 38 of the 50 most expensive wines in the world, according to our database.
And don't expect them to get any cheaper.