France is one of the biggest wine producers in the world and it is part of the culture, a staple of French life, “la belle vie”. These are major advantages if you are running a vineyard in France, but another compelling reason for choosing France as the location for a wine property investment, is in the sheer amount of choice that buyers have – the variety of locations, climates and soils which give French wines such an extraordinary diversity.

Every year in France around six billion bottles of wine are produced – 16% of the global wine output – and roughly four million of these are enjoyed by the French. While the majority are consumed on home terraces under sunny skies, one-third are shared over meals in restaurants – and out of that portion almost 50% of the wines are supplied directly from winegrowers.

The popularity of wine in France can create a viable business case for those interested in entering the French wine industry. But whether a buyer is looking for a hobby vineyard or a wine estate with a full income stream, finding the right property is not an easy task.

Buying and selling vineyards is an extremely discreet business in France. While looking online, buyers might find luxury domaines and wine estates for sale, but the selection viewable to the public is often just 10% of the true range of wine properties that are actually on the market.

How to unlock the real wine property market in France

To unlock the remaining 90% of the market, it is important to be well contacted and knowledgeable about the winegrowing market and region. Château Reignac, in Entre-Deux-Mers, often sells for around €16 per bottle, but tops tastings among wines priced at €700 a bottle. Having access to specialised wine knowledge, and understanding terroir, is crucial to a successful purchase when you are buying a vineyard in France.

Bringing an experienced buyer’s agent on board at the start of a property finding journey is one of the best ways to ensure a positive buying process. A buyer’s agent is a real estate expert who operates on behalf of the client – and always in their interest. They have a precise, up-to-date view on both the international and local market.

“As a buyer’s agent, we always have our ears to the ground and we know exactly what is for sale in all the prime market areas in France,” says Tim Swannie, Director at buyer’s agency Home Hunts, which has its headquarters in Marseille, and a 30-strong network of bilingual consultants all over France.

“Generally, vineyard properties are over-valued, especially by immobiliers (estate agents), but we know the market thoroughly and do our utmost to find our clients a property that is as close to their criteria and budget as possible. We always act independently and on our clients’ behalf, which reduces their stress, wasted time and unnecessary spending.”

Decisions decisions: hobby vineyard or wine business?

At the beginning of the search for a wine property, buyers should be clear about whether they are looking for a hobby vineyard or a wine business. If it is the latter, the winery must be robust enough to provide a stable source of income now and in the future. Anyone embarking on a wine business venture must understand how to market and sell the wine at a profit or will likely struggle financially.

A solid sales and marketing strategy is essential to making a profit and calculating the precise ROI for every euro spent is crucial. It may not be the most exciting part of running a vineyard but it is important if your wine business is going to have a future.

Whether it’s from a pension, a local salary or remote work, running a hobby vineyard will require another source of income. Passion can only go so far when there are bills to pay.

At the start of the property search process, buyers need to have done some research and be clear about where they want to live and why. With over 123,000 hectares of vineyards, Bordeaux sells 700 million bottles of wine every year – but it is also one of the most expensive markets to buy into. Medieval Saint-Émilion has steep streets and slanted vineyards, plus sandy soil that’s known to yield fruity, light wines. A vineyard property with clay or limestone, however, will produce deeper grapes and richer wine.

In the Lot, near Cahors, you can choose between vineyards in the limestone plateau, which will produce higher-tannic wines, or the gravel-prone slopes that create fruity yields. Provence, known for its spectacular climate, is one of the leading wine producing regions. Châteauneuf-du-Pape, in the Rhone Valley, produces robust reds. The Luberon yields Syrah and Viognier and the Var can produce light and fresh rosés.

“Local market knowledge is essential for making good decisions,” said Tim. “In the Bordeaux area, certain appellations of vines cost more than the property. In other regions the reverse may be true. The Home Hunts team is skilled at helping clients find a win-win on property and location.”

What to do when you find “the one”?

Once a buyer has found “the one”, it is advisable to strike a verbal agreement on price with the vendor before moving forward to the due diligence process, which can be costly. Getting spot-on advice at this stage is key.

In terms of how to structure the purchase legally, it is worth considering buying the property using a Société Civile Immobilière (SCI), a legally recognised private property company created for individuals to buy one or more French properties. A trading company for running the vineyard should also be set in motion. A French tax adviser will be able to minimise exposure to French tax.

Engaging with tax, legal and finance experts is essential and buyer’s agents have a tried and tested network of trusted partners that they can share.

Once the verbal offer is agreed in principle, buyers should proceed with the due diligence process. This entails hiring a range of professionals, including: an accountant (checking calculation of final price and making a financial audit); an architect (assessment of chateau and renovation costs); banker (for loan agreements); environmental experts (to inspect the cellar and building); lawyer (for legal, tax and labour audits); and a wine broker (to check wine quality and inventory).

On cloud wine

Buying a vineyard can be a challenging process without the right help – and running it afterwards can be hard work, but it is also an extremely rewarding lifestyle.

“We look after our clients throughout the buying process, from start, middle and end – and even after the sale is made, whether it’s assisting with renovation work or helping with the handover between the former vineyard owner and new buyers,” says Tim.

“We are pleased to go far beyond the call of duty for our customers and ensure that their vineyard purchase is the dream that they were hoping for.”

If you are looking to buy a vineyard in France here is a selection of wine properties that have recently come on the market.

Written by Tim Swannie