South Africa’s famed wine route isn’t just mile after mile of wine-producing vines. It’s a tourism draw, a lifestyle and a region with some of the country’s most stunning views. The land produces vintages that people value all over the world and visitors want to sleep in luxury accommodations where their wine is grown. These are some of the reasons for the increased interest in vineyards as homes and real estate investments. Here’s a look at the booming business of buying and selling vineyards in the Western Cape.
The most popular regions for buying vinyards are Stellenbosch, Franschhoek, Paarl, and Tulbagh. Most popular are farms on the lower end of the price scale, up to 30 million rand (just under $2 million). There have been sales in recent years for upwards of $6 million.
Several brand name wine farms that had been on the market for a while include Cordoba, located between Stellenbosch and Somerset West. When the sellers put the 86-hectare farm on the market, they were asking for 55 million rand (around $3.6 million), but they ended up snagging 58 million rand (around $3.8 million) for the property. Cordoba sits on the slopes of the Helderberg Mountain with views of False Bay and Table Mountain.
Uva Mira is a major label farm that sold in 2015. The farm sold for 65 million rand ($4.3 million) and sits at high altitude on the highest slopes of Helderberg with unparalleled views. Its location gives the estate a cool climate, and its wines have become a favorite among local sellers. The John Platter Wine Guide gave Uva Mira’s wines a 4.5-to-5-star rating, so the new owners can expect some magnificent vintages.
Klaver Valley Farm, which sits 600 feet above sea level, is one of the farms that got close to the 100-million-rand mark. It sold for 96.5 million rand in 2015 (around $6.4 million). The Western Cape farm is part of a historical stretch of wineland neighboring one of the oldest farms in the area—Wildschutsbrand Farm, which was built in the 1700s. At one point the two farms cojoined their land.
Drakensig wine estate is a boutique farm in the Franschloek valley that sold for $1.3 million in 2005. British multimillionaire Andrew Nisbet fell in love with the property before interest in the region took off. Nisbet and his wife visited the 50-hectare property once before they were certain they would buy it. The farm produces 100,000 bottles of red wine per year. Nisbet and his family use it mainly as a vacation home.
British property owners are among the top investors in the Western Cape, where 31 British families or individuals own wine farms. Stephen Richardson bought Mellasat Vineyards in Paarl in the mid-1990s for about $57,000. By 2010, the property was worth over $1 million. Richardson looked at 16 farms in 10 days before choosing Paarl. He spends most of the year on the property and works in the wine industry.
One 25-hectare farm is currently on the market for 93,790,00 rand or just around $6.5 million. The farm has two cool rooms, two offices, and two residential buildings that have nine bedrooms, five bathrooms, and one shed. The wine cellar on the property is fair-trade compliant, and the entire farm can accommodate up to 350 guests for events in its tasting hall.
A quick look at one of the Realtor sites in the region specializing in wine farms will show you that the lowest price available for a Stellenbosch wine farm is around $1.6 million. Some properties combine modern, state-of-the-art architecture with breathtaking natural landscapes. One such property is a mixed-use farm with an all-glass front overlooking Gordon’s Bay. The $3 million home has two small cottages and one main residential building.