Part 2: Vineyard Estates for Pennies on the Dollar

Surprisingly, property ownership opportunities in Mendoza remain affordable, especially when compared to comparable properties in North America.  Perhaps the pinnacle of property prices is in California’s Napa Valley where vineyard estates start in the low millions and run into the stratosphere. While not quite as high, vineyard homes in the Okanagan are, by comparison to Mendoza very expensive.  For the real estate investor who can afford these North American properties, perhaps Argentina isn’t so exciting.   But for many, the ability to own a vineyard estate is a dream worth capturing, and the prices of property in Mendoza bring the reality to many more people.   

At the high-end of property ownership in the Uco Valley, the Vines of Mendoza has staked the claim as the top location for both property ownership and destination tourism.  This 5-star property boasts 21 villas available for nightly rental, a world-renowned dining establishment featuring Francis Mallmann's unique Siete Fuegos (Seven Fires) and a selection of over 250 top-ranked Argentinian wines.  Vineyard parcels start at $130,000 per acre. Nightly room rates from $1,200.

At the other end of the spectrum, buyers can find stand-alone farms independent from any brand or affiliation.  This is an open palette, per se to create a personal brand of wine or a new tourist destination B&B.  Family farms in and around the Mendoza province range from 26 Ha in Junin with a variety of vines at $450K, to 9 Ha of Malbec vines in Tupangato for $725K.  While priced far lower than a managed property, these options may be more hands-on than many investors want to experience.

Splitting the middle of the two extremes are several properties where owners can buy a property within an existing vineyard, enjoy the views and atmosphere of the experience, but suffer none of the trials, tribulations, and economic risks of being an actual farmer.     

Casa de Uco is a 325-hectare vineyard with a post-modern flair.  Built in 2014, the main bodega is framed in concrete, steel and stone with vaulted ceilings, suspended walkways, and interior design elements to match.  Villas on the compound start at $750,000.  Nightly rates start around $670.

A more traditional Argentinian hacienda feel is delivered to owners at La Morada’s Gran Vineyard Estates.  This 300 Ha mature vineyard produces over 3,300,000 kg of grapes per year used by Hobbs, Balboa, Zuccardi, and other award-winning wineries to produce their exceptional vintages.  Tiny homes and condos in and around the lodge start under $200K and estate homes in the vineyard begin under $500K.  Nightly rates start at $200.

Argentina is like the pendulum on the old grandfather clock swinging back and forth as the economic factors change how outsider percvieve the country.  Of course, general perception matters, but for a lifestyle buyer, an investor looking for a deep value proposition delivering a similar rich lifestyle experience, the facts merit a good hard look.  

Getting to Mendoza:  Travelers should consider connecting through Santiago, Chile or from Sao Paulo, Brazil to Mendoza (MDZ).  From Toronto and Vancouver, consider flying through Buenos Aires, Mexico City, or Lima.  As a base to explore the Uco Valley, which is located only an hour south, stay in Mendoza city.  Park Hyatt offers a great location and beautiful hotel at $300/night.  A more economical option is Hotel Argentino, located on the same square as Hyatt, for $100/night.


 
Mendoza Vineyards by Mitch Weisburgh is licensed under CC BY 2.0
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