Wine Country Calling… Vamos!

Picture credit: Algodon Wine Estates

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As some people seek a quieter life and embrace remote working that’s resulted from the COVID-19 pandemic, there is growing interest in living in wine areas around the world.

And with wine country real estate prices going through the roof in certain areas, it might pay for wealthy buyers to look in less obvious parts of the globe.

Want to live and work in Napa Valley? Very nice, but you might not be able to get an awful lot for your money with an ever-tightening real estate inventory.

As this article points out, some Australian wine regions are seeing frenzied market activity and houses going for way more than the asking price.

Head South To Argentina?

One example of a possible exception to the trend of rising prices is the Mendoza wine region in Argentina, famous for its Malbec reds among others. There, real estate prices have dropped by up to 30% in this pandemic market, with the local peso currency losing value against the U.S. dollar.

And one Miami-based company specializing in luxury lifestyles in Argentina is trying to lure potential buyers to its sprawling estate in rural San Rafael, Mendoza, the southern heart of Argentina wine country.

Gaucho Group Holdings Inc. VINO, which has a number of business areas highlighting luxury Argentinian products such as leather goods and a boutique hotel in the heart of Buenos Aires, is developing its Algodon Wine Estates in Mendoza.

Plans call for more real estate development as well as building on current developments such as a unique golf course that plays through the vines, as well as first-class tennis facilities within the natural surroundings vineyards and fruit orchards. The idea is to hold international tennis tournaments at the upgraded facility in San Rafael as well as develop a 27-hole championship golf course amid the fruitful Malbec vineyards.

The 4,138-acre Algodon site, which also includes a year round restaurant specializing in traditional Argentine cuisine, entered a new stage of development late last year with the decision to build on an additional 200 residential lots with individual holdings ranging from 2.47 acres to 12 acres, potentially generating up to $100 million in sales.

In addition to building more houses, the new centerpiece of the masterplan is an 80-room luxury hotel with views over the wine valley. Within the hotel, Gaucho plans to partner with what it calls a “world-class luxury hospitality brand” to operate an additional 40 to 60 residential units, with the revenue potential from the hotel rooms and branded residences to generate an additional $25 million per year.

Sheraton Hotels and Resorts, owned by Marriott International Inc. MAR, and the Park Hyatt group, operated by Hyatt Hotels Corp. H, run hotels in Mendoza.

“Since experiencing the pandemic, we believe many people around the globe have reconsidered their quality-of-life quotient and are now actively pursuing opportunities and major life changes that can bring them back to nature and natural foods, as they seek ample space, clean fresh air, a healthy environment and wonderful, serene surroundings,” Gaucho Holdings CEO Scott Mathis said at the time of the announcement to expand the resort. “At Algodon Wine Estates, we’ve answered that need by creating an ultra-luxury global community of wellness, culinary, wine, and sports destination for all to enjoy.”

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.