The Strategist

Superyacht Sales Are Growing

03/07/2016 - 13:18

Last year, the super-rich bought up most incredible and huge yachts in the world according to Knight Frank Wealth Report, which noted that the superyacht sales rose 40% in 2015 compared to 2014.
The study conducted by Wealth-X experts was attended by about 45 thousand people with the highest status in the world; their total fortune is estimated at more than half a trillion dollars.

By Knight Frank’s definition, superyachts are boats longer than 78 feet. Exactly such yachts are popular among the super-rich who travel in the Pacific Ocean. These boats are very expensive, not only in the purchase, but also to maintain.

Kitty McGowan of the United States Superyacht Association estimates the annual cost of servicing a 180 feet-long yacht at $ 4.75 million.

The field of retail sales saw an increase of more than 40%.

Y.Co, a company in Monte Carlo, which sells boats, said that the company in 2015 sold 16 superyachts with average length of 154 ft. and a total value of $ 350 million.

This is twice more than Y.Co sale’s in 2014, said Charlie Birkett, the company’s executive director.

"Of course, I do not think we are back to the sales level observed until 2008, but we are approaching it," - he explained.

He predicted that 48 super-yachts longer than 100 meters, or 328 feet, will be plowing the seas by the end of 2016.

According to Boat International data, only 16 super-yachts longer than 60 meters were sold in 2015.

It is noteworthy that the Boat International report primarily shows the number of superyachts sold, not the number of dollars spent. At the same time, the report notes that the retailers in 2015 managed to sell 20 superyachts fewer than in 2014: 392 and 412, respectively.

Furthermore, the way the superyachts are used is changing, too. Before, they was a good place to amuse leisure and travel through the Caribbean and Gulf of the Mediterranean Sea. Now, according to Knight Frank’s report, the directions have changed and shifted towards riskier trips to places such as Antarctica and Asia.

This, in turn, requires redesign of yachts. People need to refit their yacht, so that they would be more adapted to the new travel routes. According to Birket, "customers are now younger, bolder, they like water sports, and not just traditional cruises."

Now the yacht buyers require more skilled personnel who can operate a vessel of this size at a distance of 500 -1 thousand miles from the coast, says Birkett. Y.Co’s staff now includes ambulance doctors and trainers in water sports.

Superyachts are not only one expensive toy of the rich. Knight Frank’s report also identifies other things: cars, collectibles, art.

"People are willing to pay for their hobbies," - concludes Andrew Shirley, author of the report.


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