Finger Lakes

NEWCOMERS JUICE WINE LAND VALUES:

The couple are part of what could be a new chapter in Finger Lakes wines: out-of-towners buying land for wine-related businesses because they believe it's a steal compared with land in other premium wine regions.

The trend could boost the prestige of the wine-growing region, make it a more popular vacation destination and boost the economy both through tourism and wine sales. At the same time, real estate agents predict that in coming years there may be a bidding war for prime Finger Lakes land among vintners, grape growers, farmers and those who want to build dream homes.

Although there are no solid numbers on sales across the region, two months of interviews with real estate agents, winery owners, town assessors and industry experts found that interest in the Finger Lakes region has surged in the past five years.

As a result, the price of prime vacation and wine-growing acreage has tripled in that time from about $1,500 per acre for bare land in 2001 to $4,500 today. Depending on location, the cost for land with existing vinifera or hybrid vines can run $8,000 to $10,000 an acre, the real estate agents estimate.
...
The tourism draw, as well as the potential of the wine industry, adds to the interest in the Finger Lakes, real estate experts say. New York sees an average of 18,393 visitors per winery, compared with 12,167 in Napa, according to the VinQuest 2006 U.S. Wine Industry survey. The average tasting room sales per New York winery were up 41 percent in 2005 from the year before, according to the same survey.

“Lake view property is going up, the land for crops is going up, the land for grapes is going up,” said Mary Lilyea, assessor for the towns of Benton and Torrey, Yates County. “This whole winery thing has grown so fast.”
...
The wine and grape foundation says about 10 new wineries open a year in the Finger Lakes region, with the average vineyard being 30 acres. And the tourism industry should get a boost in June with the opening of the New York Wine & Culinary Center in Canandaigua, a $7.5 million facility backed by Constellation Brands Inc., Wegmans Food Markets Inc. and Rochester Institute of Technology.