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Wine Farms

Posted by admin on 11-02-2015, 20:41
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In the most famous, largest and oldest wine-growing region of the Western Cape not far from Table Mountain, many wine farms are available for sale. Numerous winemakers, many from the German-speaking countries, have tried to fulfil the dream of owning their own winery in the South African sun.

However, even in one of the most beautiful corners of the world, international economic crises do not go unnoticed.  Some of the farms once started with great hopes are now on sale again. The industry predicts that real estate prices will return to a more realistic level, but this does not mean that these wineries are on offer for unrealistic bargain prices. 

Wine Farms - News Wine Estates - Cape Town Property in South Africa

Wine farms Winelands

Wine Farms in Stellenbosch, Franschhoek and Paarl
Anyone who decides to buy a South African winery must be prepared to compete with the wealthy from all over the world. In the wine regions between Stellenbosch, Paarl and Franschhoek, there are Italian industrialists, Swiss art collectors and American real estate moguls, as well as European and South African large industrials. For example, the English jeweler Laurence Graff, who invested about 30 million euros to turn an aging wine estate into a luxury hotel.

The majority of the owners, however, keep their farms in the family for decades and pass them on from generation to generation. Nevertheless, even in the small market of the historical wineries, there is movement. In mid-2011, for example, two investment banks from the Czech Republic and Great Britain secured the Cape Town wine estate Klein Constantia, where wine has been produced since 1689. The industry is speculating on a price of 200 million Rand (20 million euro). The historical Lanzerac estate also passed into the hands of a foreign buyer in a similar price region.
 
The economy magazine "Financial Mail" expects that Constantia Uitsig will soon be on sale, and a possible sale of Boschendal, which also belongs to the oldest wineries in South Africa, is an ‘open secret’.

By the end of the 1980s, the wine region of Cape Town was still quite laid-back. No one could imagine that South African wines would be found  in every German supermarket - and wineries in the Western Cape of South Africa would be as popular as villas on the Mediterranean.
 
Since then, the industry experienced many ups and downs. Today, some winemakers consider selling or reducing their farms. The international market is flooded with wine from the so-called New World. At the same time the production costs keep increasing Prices for wineries have decreased by about 30 percent over the last one and a half years. Farms were owned by an estimated 80% foreign investors and 20% domestic investors, but now the ratio has reversed. Many affluent South Africans took the place of the Europeans. However, the classical operation of an agricultural business is not their main interest – owning a wine farm is viewed above all as an investment in a certain type of lifestyle.

Today a visit to the Cape wine region is essential for Cape Town tourists. Visitors stand in awe of the dramatic mountain scenery, the aesthetically pleasing vines and the quaint Cape Dutch houses. It is no wonder that one or the other visitor goes home with a hunger to return to SA and own their own slice of South African heaven.

Europeans have been leading the way in terms of wine at the Cape. Franschhoek was founded by the Huguenots in the late 17th century. The French, however, were not the first to grow wine – it was the Dutch who landed at the southern tip of Africa in 1652 who introduced winemaking.
 
The first governor of the Cape region, Simon van der Stel, introduced the first vines in South Africa, imposed penalties for picking immature grapes and planted oaks to produce the wine barrels needed for storage. The beautiful tree-studded & historical town of Stellenbosch was named after Van der Stel. He was also the pioneer who produced the "Vin de Constance" on Klein Constantia, which even Napoleon tasted.
 
For further information please don't hesitate to contact us.

Your Cape Town Real Estate Team


 
 

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