Market Pulse: Wine Regions
Presenting the latest insights from our extensive network of industry leaders, we take a closer look at what’s happening in select global markets that are influenced by the wine production industry. From South Africa to California and more, read below!
HIGHEST RECORDED SALE IN THE LAST 12 MONTHS:
The producing wine farms around Stellenbosch sell at an average between U.S. $3,331,000 and $8,882,000.
IMPACT OF THE WINE INDUSTRY ON THE LOCAL MARKET:
For the last 300 years, the industry has formed a big part of the Stellenbosch economy. Since the first “Stellenbosch wine route” was established during the 1970’s, the tourist industry has exploded and Stellenbosch has become a popular destination for tourists and for buyers of wine farms. The small lifestyle farms with boutique cellars have become extremely popular with the world affluent as a “must have.” There are over 150 wineries in this sub-region.
GRAPES GROWN IN THIS AREA/ TOP WINE PRODUCERS:
The grapes grown include Sauvignon, Chenin, Cabernet, Merlot, Chardonnay and more. Also, Pinotage, which is a famous South African original varietal made from a grape that was crossed on local soil between Pinot Noir and Cinsaut in 1925. Top Pinotage producers are Kanonkop, Simonsig, Beyerskloof, Kaapzicht and Neethlingshof.
LUXURY BUYERS ARE LOOKING FOR:
Clean design, comfort, accessibility and style.
MOST BUYERS FROM OUTSIDE THE AREA ARE COMING FROM:
From the Northern part of South Africa as well as from overseas, mostly Europe. The region’s potential for producing quality wines and as a tourism hub has seen investors from as far afield as France, Germany, Switzerland, Italy and America staking their claim in the Stellenbosch winelands.
PRICE POINT FOR THE TOP 10% OF HOMES ACROSS THE MARKET:
U.S. $1,110,000
PRICE POINT FOR THE TOP 10% OF VINEYARD HOMES:
U.S. $7,400,000
HIGHEST RECORDED SALE IN THE LAST 12 MONTHS:
U.S. $11,450,000
IMPACT OF THE WINE INDUSTRY ON THE LOCAL MARKET:
The wine industry in Santa Barbara County has grown exponentially with most wineries having not only their own tasting rooms, but also retail locations. This quiet wine growing region was thrust into the limelight with the 2004 movie Sideways which was filmed in the area. Since then, the market has taken off and continues to grow as more people discover this beautiful corner of California’s Central Coast.
GRAPES GROWN IN THIS AREA/ TOP WINE PRODUCERS:
Mainly Pinot Noir and Chardonnay are grown here, however with so many microclimates they grow many other varietals as well and Santa Barbara is fast approaching the reputation of the more well-known regions like Napa. Currently the area has approximately four or five distinct and recognized American Viticultural (cultivation of grapevines) growing areas.
LUXURY BUYERS ARE LOOKING FOR:
Single story homes with views, updated bathrooms and kitchens, modern, warm, airy, and with a guest house or guest quarters.
MOST BUYERS FROM OUTSIDE THE AREA ARE COMING FROM:
Mainly other Southern California coastal cities with a few coming from the Bay Area.
PRICE POINT FOR THE TOP 10% OF HOMES ACROSS THE MARKET:
U.S. $5,000,000
PRICE POINT FOR THE TOP 10% OF VINEYARD HOMES:
U.S. $5,000,000, but can run up to U.S. $45,000,000
HIGHEST RECORDED SALE IN THE LAST 12 MONTHS:
U.S. $20,254,000
IMPACT OF THE WINE INDUSTRY ON THE LOCAL MARKET:
The wine industry has impacted the local real estate market mostly via Agritourism, which has broadened the services offered to the public from wineries large and small, including restaurants and retail. It is the number one industry bringing in a large tourism turn out and creating more jobs, which ultimately leads to more people moving to the area. The region offers an idyllic lifestyle, attracting wealthier real estate clientele from Canada and worldwide. Investors are also attracted to this market for the holding properties with revenue streams, such as vineyards.
GRAPES GROWN IN THIS AREA/ TOP WINE PRODUCERS ARE:
The area is divided into North, Central and South regions to produce certain varietals best suited to their temperature ranges. The North will grow primarily white grapes, such as Riesling, Pinot Blanc, Pinot Grigio, Chardonnay and Gewürztraminer. Central Okanagan will grow all whites, plus lighter reds such as Pinot Noir and Marachal Foch. South Okanagan will grow some white, but is best suited to all the deep red varietals such as Merlot, Cabernet Sauvignon, Cabernet Franc, Syrah, Malbec and Sangiovese.
LUXURY BUYERS ARE LOOKING FOR:
Lake views, a pool, walk-out rancher style, chef’s kitchen, butler’s pantry, spa-style or modern en suite bathroom, hardwood flooring, wine cellars, triple garage, low maintenance yards and privacy.
MOST BUYERS FROM OUTSIDE THE AREA ARE COMING FROM:
Vancouver lower mainland, Calgary, Ontario primarily, the U.S. and Asia.
PRICE POINT FOR THE TOP 10% OF HOMES ACROSS THE MARKET:
Ranges from U.S. $5,200,000- $23,100,000
PRICE POINT FOR THE TOP 10% OF VINEYARD HOMES:
Ranges from U.S. $1,100,000- $3,700,000
To read the full article which includes additional market research in Tuscany, Italy and Willamette Valley/ Greater Portland, Oregon view pages 15-17 in our latest Luxury Portfolio Magazine and to see more vineyard and winery properties click here.