THE MOST EXPENSIVE LANDS IN THE WORLD

BAROLO & BARBARESCO & ROERO PARADISES

Wine is not limited to the product in the glass, the label, or on-premise tastings; it is also – and primarily – the outcome of land with varying degrees of viticultural suitability, which can be structured and valued as a real-estate asset and, in some cases, as an object of financial investment. This dimension has increasingly attracted the attention of banks, insurance companies and investment funds, whose involvement in the sector has grown in recent years, albeit largely concentrated in the most highly rated and proven winegrowing areas, where the investment rationale is more clearly defensible in terms of risk and return.

From this perspective, the value of wine is intrinsically linked to the value of the underlying land: the territory functions as the wine’s primary value driver, underpinning its differentiation and premium positioning, while simultaneously representing a central component in broader asset allocation and investment strategies.

And within this financial perspective, The Wealth Report 2025, produced by Knight Frank, was released, establishing a global ranking of vineyard land values and confirming Piedmont as the region with the highest absolute values worldwide—further reinforcing the prestige of its vineyards and wines and underscoring the unique positioning of this region on the international wine investment landscape. According to the report, more than two million dollars are required for a hectare of vineyard in Barolo, over USD 1.2 million to acquire one in Bordeaux–Margaux, and a similar figure in Rutherford, in California’s prestigious Napa Valley.

These figures are, of course, indicative and “can vary significantly within the same region,” the analysts note, but they nonetheless provide a useful snapshot of market trends.

Barolo vineyards in Piedmont rank as the most expensive in the world, posting a 5% increase between 2023 and 2024 and reaching slightly above USD 2 million per hectare (with some transactions reportedly well above the level indicated in the study). France follows with vineyards in the Margaux AOC, within the broader Bordeaux area, which recorded a 4% decline year-on-year but remain valued at around USD 1.25 million per hectare.

California holds its ground: vineyards in the Napa Valley, particularly in Rutherford, reach USD 1.2 million per hectare, with prices broadly stable compared to 2023. Fourth and fifth place are occupied by two French regions: Burgundy’s Côte de Nuits (USD 1 million per hectare, stable) and Champagne (over USD 1 million per hectare, up 2% year-on-year).

Italy appears again in sixth and seventh position, thanks to vineyards dedicated to Brunello di Montalcino (+5% to USD 910,000 per hectare) and to the Bolgheri DOC area (+3% to EUR 810,000 per hectare).

One element that the report obviously could not take into account is the significant tax advantage in the agricultural sector and – specifically regarding the real estate investment in the Tenimenti Terre Imperiali estates – the income potential from leasing the land itself. Under current regulations, agricultural leases are subject to a nominal land tax, amounting to just a few dozen euros per hectare, which increases the net income of the individual landowner according to the applicable tax rate.

For example, assuming a personal income tax rate of 30% and an agricultural lease income of EUR 2,500 per hectare per year, the tax payable would not be 30% of EUR 2,500 (EUR 750), but rather 30% of the cadastral agricultural income, which is calculated based on the land’s official cadastral value (varying by municipality) and is generally much lower. In practical terms, for a hectare of vineyard in La Morra (Barolo terroir) with a cadastral value of EUR 250/ha, the taxable income would be EUR 451, which at 30% results in only EUR 135 in taxes, instead of EUR 750.

However, purchasing vineyard land in Barolo or Barbaresco (with average prices ranging between EUR 650,000 and EUR 1,000,000 per hectare, depending on the area and the specific crus) is not necessarily a highly profitable or rational investment. Moreover, an investor looking to acquire vineyard land in Piedmont will quickly realize that, despite the astronomical prices, finding offers for sale in Barolo (and Barbaresco) is relatively straightforward. If the search extends to the Monferrato region (provinces of Asti and Alessandria), prices drop to around 3% of Barolo levels, and there is a wide availability of land for sale.

And here, in our view, is the region that is far rarer and more difficult to acquire: the Roero, the area located north of the Tanaro River, adjoining at its southern end the territories of the Langhe, and in particular Barolo and Barbaresco. It is practically impossible to find offers for sale here, especially if one is looking for plots larger than 1–2 hectares in a single contiguous unit.

The largest estate in the Roero is Tenuta La Carretta in Piobesi d’Alba, with approximately 35 hectares in a single contiguous plot, followed by Podere Antico di Monteforche with around 11 hectares in a single block. By contrast, most wineries in the Roero—even prominent ones—typically own multiple smaller plots (usually 2–3 hectares each) scattered across different municipalities in the region, rather than in a single consolidated unit.