Amid global crises, superyachts are selling more than ever. Here’s why.
Over the past year there has been a surge in the number of luxury yachts, boats and yachting companies that are making a splash in the global luxury market. According to the latest figures from Lloyd’s List and Global Yacht Sales, superyachts have sold in their highest quarterly total since 2007.
The growth rate has been impressive and suggests that owners are spending more in an attempt to buy even more.
While many luxury yachting entrepreneurs have been using the crisis – and resulting collapse in the stock market – as an opportunity to sell their luxury projects and the funds needed to buy them, owners who have benefited from the downturn are now enjoying the windfall.
Many say it is a double-edged sword. As many have pointed out, they will have to work overtime to try to ensure their boats and boats, and their investments will only continue to grow.
Some are planning to build the world’s largest ever superyacht.
Others are preparing for a new investment boom in high-end yachting in the years ahead.
Here, we look at the challenges and benefits of superyachts and the trends in the industry to make informed decisions for the future.
How superyachts are selling
There is a good chance that you will be hearing a lot more about super yachts in the months and years to come. Ownership is set to increase in a big way.
But the demand for superyachts isn’t driven just by owners. According to the data compiled by Global Yacht Sales, sales of super yachts increased by 34% and average selling prices jumped by 40.7%.
While it is hard to know exactly why sales and prices are going up, the increase in demand has to be having an impact on the luxury market.
The overall luxury market is expected to grow by 50% to £4.9 trillion by 2050. Luxury yacht sales are expected to grow from 3.7 million in 2013 to 6.2 million in 2020.
Sales are predicted to grow by 8.5% per annum over the remaining 15 years of the forecast period. Of this, 20% will come from the UK market.
The growth rates seen by luxury yacht sales for the three months to February 2015 are