Waterslide on Savannah, a 274-foot luxury hybrid yacht.
Courtesy of Northrop & Johnson
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide for the high-net-worth investor and consumer. subscription To receive future issues, directly to your inbox.
Superyacht sales fell in 2023, as long waiting lists, high costs and oligarch penalties weighed on demand, according to a new report.
Sales of new superyachts (yachts longer than 100 feet) fell 17% last year, according to a new State of Yachting report from SuperYacht Times. There were 203 new superyacht sales in 2023, down from 245 in 2022 and down from the record 313 in 2021.
A buyer placing an order for a new yacht longer than 200 feet today faces wait times of three to four years due to backlogs caused by the pandemic, said Ralph Dasert, head of intelligence at SuperYacht Times. Prices also rise due to higher labor and material costs.
Dazert said he expects sales of new superyachts to decline “a little more this year” given continuing costs and delays.
The largest superyachts took the biggest hit, with sales of yachts longer than 200 meters, or roughly 650 feet, falling by 40%. The main reason for the decline in large superyachts is due to the fact that wealthy buyers from Russia are leaving the market following the invasion of Ukraine by the country in 2022, according to the report.
“The Russians tended to order very expensive, very large yachts,” he said.
Americans make up some of the shortfall, accounting for nearly a quarter of all superyacht sales last year. While Americans tend to build smaller yachts compared to buyers from the Middle East and Russia, American boats are getting larger.
The average length of a Saudi-owned luxury yacht is 202 feet, compared to 200 feet for Russian buyers and 177 feet for Americans, according to the report.
Even with the decline in new sales, yacht completions have increased. This data represents yachts that were ordered during the pandemic craze and have just been launched. The number of completed projects increased by 31% in 2023 to reach 202 luxury yachts.
The growing fleet of superyachts translates into increased demand for the entire ecosystem of the yachting economy – from builders and brokers to marina slips and crew. There are now nearly 6,000 superyachts, triple the number in 2002, according to SuperYacht Times.
The influx of wealthy buyers who first entered the market during Covid are continuing to use their yachts, Dazert said. Many are upgrading, which means the high water mark for the yachting economy is likely to continue to rise.
“The customer pool has always expanded,” he said.
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