Top 10 vineyard investments19th April, 2012 by db_staff
Vineyard investments can be a safe haven for investors in difficult times, but looking beyond traditional regions can unlock real potential.
With certain fine wines no longer representing the solid investment they once did, the next logical step is to gauge the investment potential of the land
Taking that global wine consumption will continue to rise, then identifying where the wine demand will pick-up and investing in that region, represents a solid strategy to maximise your money.
The smart money would now seem to be leaning towards investing in vineyards. But it is not a short term strategy, as it can take 10 years to establish one.
A major factor involved in the decision making of where to invest in a vineyard is the geographical region, as this can make a big difference to the value of its wine. A vineyard in a less prestigious area might be cheaper to buy, but the wine will sell for less.
Another sign to look out for when deciding what will represent an attractive vineyard region investment, is if big companies are moving into the area already. This is a good indication that the area is beginning to develop.
The price of vineyards are also dropping. In Bordeaux and Dordogne vineyards dropped by 14% in 2010 and fell by 18% in Montalcino, Italy.
New World regions showed a similar trend as prices fell by 23% in Hawke’s Bay, New Zealand, and 25% in the US’s Napa Valley.
The drinks business have come up with top 10 new vineyard regions around the world that may make a splash in the next decade or so.