Superyacht sales experienced a significant decline in 2023 due to a variety of factors. According to the SuperYacht Times’ State of Yachting report, sales of new superyachts over 100 feet long dropped by 17% compared to the previous year. This decline can be attributed to long waiting lists, soaring costs, and sanctions placed on oligarchs. Buyers looking to order a new yacht over 200 feet are facing wait times of three to four years, creating backlogs dating back to the pandemic. Additionally, prices are skyrocketing due to increased labor and material costs. The head of intelligence at SuperYacht Times, Ralph Dazert, predicts that new superyacht sales may continue to decrease in the coming year due to these ongoing challenges.
The decline in superyacht sales was particularly noticeable in the larger yacht category. Sales of superyachts over 200 meters, approximately 650 feet, plummeted by 40% in 2023. One of the main reasons for this drastic drop is the withdrawal of rich Russian buyers from the market following the Ukraine invasion in 2022. Dazert noted that Russian buyers typically ordered extravagant and oversized yachts, contributing significantly to the decline in sales. On the bright side, American buyers are stepping in to fill the gap, accounting for nearly a quarter of all superyacht sales last year. While American buyers tend to opt for smaller yachts compared to their Middle Eastern and Russian counterparts, the size of American-owned yachts is on the rise.
Despite the decrease in new superyacht sales, there was a notable increase in yacht completions in 2023. This data reflects yachts that were ordered during the peak of the pandemic and are now being launched. The number of completed yachts surged by 31% last year, reaching a total of 202 superyachts. This growing fleet of superyachts is driving demand across the entire yacht economy, from builders and brokers to marina slips and crew. SuperYacht Times reported that there are now nearly 6,000 superyachts in existence, triple the number from 2002. The influx of wealthy buyers entering the market during the Covid-19 pandemic continues to utilize their yachts, with many opting to upgrade to larger vessels.
Despite the challenges faced in the superyacht industry, Dazert remains optimistic about the future. The increasing number of wealthy buyers in the market, combined with a growing demand for superyachts and related services, suggests that the yachting economy’s high-water mark will continue to rise. Dazert believes that the expansion of the customer base is permanent, indicating a positive trajectory for the industry moving forward. While uncertainties may persist, the resilience and adaptability of the superyacht market bode well for its long-term success.
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