Yachts (global market)

2023:17% drop in superyacht sales due to wealthy Russians leaving the market

In 2023, 203 new superyachts were sold worldwide. This is 17% less than the previous year, when 245 such ships were sold. In relation to the record year 2021 with 313 sold superyachts, demand decreased by more than a third. Such data are provided in a SuperYacht Times report published in mid-April 2024.

Analysts explain the decline in demand for superyachts for several reasons. The main thing is the departure from the market of wealthy buyers from Russia who stopped placing orders due to Western sanctions. In addition, there is a significant increase in prices due to higher costs for labor and materials. Another reason is the delays caused by the consequences of the COVID-19 pandemic. A buyer placing an order for a new vessel more than 60 meters long will have to wait three to four years. For many potential customers, such deadlines are unacceptable.

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The report says that in this situation, the segment of superyachts with a length of more than 200 meters was most affected. In 2023, their sales collapsed by 40% compared to 2022. Analysts believe that in 2024, given the rising cost and long lead times, sales will also be "somewhat reduced."

At the same time, the study notes that against the background of a decrease in demand among Russian oligarchs, the number of orders from US residents has increased. In 2023, Americans accounted for almost 25% of total superyacht sales. At the same time, US customers usually purchase more compact yachts than Middle Eastern and Russian buyers. Thus, the average length of yachts belonging to customers from Saudi Arabia is 61.6 meters against 61 meters for Russians and 54 meters for Americans.^[1]

2022: Maintaining a yacht per year costs 10-15% of its cost

Yachts require careful care. They stand in salt water, which causes rust and mold to form on the case. Yachts must be regularly washed and cleaned, painted and repainted, monitor the operation of screws and mooring lines.

According to one of the lawyers, with whom Bloomberg spoke in November 2022, maintaining a yacht per year can cost from 10 to 15% of its value. When yachts do not go to sea, their maintenance is cheaper - at least 3% of its cost.

2021: World yacht sales double, to €4.06 billion

In 2021, 262 yachts were sold worldwide, up 46 from a year earlier. At the same time, in monetary terms, the volume of this market almost doubled over the same period - from 2.27 billion to 4.06 billion euros. This is evidenced by data from analysts at The Superyacht Agency (released in mid-January 2022) studying the yacht market.

In 2021, the COVID-19 pandemic continued to have a negative impact on the yacht market, but coronavirus restrictions were less stringent than in 2020. As a result, many owners and/or prospective buyers have used their vessels or chartered others, which may explain to some extent why there were fewer deals in the third quarter of 2021 than in 2020.

Indicators by the number of yachts sold and their cost

After two years of limited yachting time from 2020 to 2022, it is entirely unsurprising that sales declined during the peak Mediterranean months. The most productive sales period in 2021 was the fourth quarter, when 78 sales were made.

The relatively low total sales in 2020 was the result of the initial impact of the COVID-19 pandemic and the uncertainty it caused in the economy. In 2020, the average price of a yacht was €10.5 million, while in 2021 it rose to €15.6 million. As Jonathan Beckett, CEO of Burgess, explained:... " as it stands, prices are reasonable. There is no more mark-up due to COVID, you can't go out and find cheap deals for great superyachts, but equally, I don't think prices are inflated by demand at the moment. Prices seem fair and it's amazing.'

Sales of yachts in the world doubled to reach 4.06 billion euros

2021 turned out to be a successful period for brokerage activities in the superyacht market. Many of the industry's most prominent market commentators predict sales will remain strong in 2022. However, they all also warned of the potential impact of a lack of quality deliveries within the most desirable size and brand ranges, which could ultimately affect pricing.^[2]

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