If you’re part of the Napa Valley wine industry, you know how important it is to stay attuned to the cost for land. As vineyard appraisers in Napa County, CA, we make it a point to track trends in land costs to provide the best possible service and guidance for our customers.
Over the past couple of years, the cost of a prime acre of a vineyard in Napa Valley has increased 14.8 percent, as cited in a report by the California Chapter of the American Society of Farm Managers and Rural Appraisers. Several years ago, a buyer seeking to purchase the best land would have been looking at an average cost of $270,000 per acre. More recently, the average price point has been $310,000 per acre, and rates of $400,000 or more per acre are not uncommon.
Many buyers of the best properties are from Napa Valley or elsewhere in California, such as Silicon Valley or the Bay Area. Real estate brokers have also observed that a number of today’s vineyard land buyers are from outside the United States, including from as far away as China.
These growers and investors tend to be interested in having a greater share of Napa’s fruit, and some are interested in shipping the wine back to their countries. Relatedly, buyers who are interested in entering the wine business may be motivated to buy land because a strong economy has given them the means to feel secure in purchasing land for a vineyard or winery.
Along with increased land prices, wineries in the Napa area have been experiencing good business, allowing them to raise the prices on their bottles. These are not unrelated occurrences, as many experts cite that consumers’ desire and ability to purchase higher-priced wines plays a direct role in land prices.
A look into the recent increase in land prices also reveals the popularity of high-quality land well suited for producing cabernet. As land prices continue to increase, some industry members believe that it is essential for Napa to remain planted out in a way that makes the most sense. Because many areas on hillside parcels and much of the valley floor have been planted, supply and demand for current properties has continued to grow, leading to higher prices.
Get professional advice
Do you have any questions about land prices in Napa Valley? Turn to our expert team of vineyard appraisers in Napa County, CA. The professionals at County Appraisals Inc. are experienced in working with agricultural related properties that are most often developed as vineyards, wineries, rural estates or single family residential uses on acreage.
We offer valuations and appraisals and cover all necessary aspects of the appraisal process, including lending, estate tax valuations, estate planning and purchase negotiations. We take special care to make our appraisals as easy to understand as possible.
Our services also extend to customers in areas such as Sonoma County, Marin County, Lake County, Mendocino County and Solano County. To learn more about our services or to work with us, contact us today and learn why County Appraisals Inc. is the most trusted name for real estate appraisals in Napa Valley!
Categorised in: Vineyard Appraisals
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