Superyacht sales plummet as Russian oligarchs exit the market | Wilnesh News

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Superyacht sales will plunge in 2023 as long waiting lists, soaring costs and oligarch sanctions hit demand, a new report shows.

According to Superyacht Times’ latest State of the Yacht report, sales of new superyachts (yachts over 100 feet in length) fell 17% last year. New superyacht sales in 2023 were 203, down from 245 in 2022 and down from the record 313 in 2021.

SuperYacht Times intelligence director Ralph Dazert said buyers ordering a new yacht over 200 feet today will face a wait of three to four years due to the backlog caused by the pandemic. Prices are also soaring as labor and material costs rise.

Dazet said he expected new superyacht sales to “fall further” this year given ongoing costs and delays.

The largest superyachts were hardest hit, with sales of yachts over 200 meters (about 650 feet) down 40%. According to the report, the main reason for the sharp decline in superyachts is that wealthy Russian buyers are exiting the market after Russia invades Ukraine in 2022.

“Russians tend to order very luxurious and very large yachts,” he said.

Americans are filling some of the gap, accounting for nearly a quarter of total superyacht sales last year. While Americans tend to build smaller yachts compared to Middle Eastern and Russian buyers, American boats are getting bigger.

The average length of superyachts owned by Saudi Arabia is 202 feet, compared with an average of 200 feet for Russian buyers and 177 feet for U.S. buyers, the report said.

Although new sales fell, yacht completions rose. The data represents yachts ordered during the pandemic and now newly launched. In 2023, the number of superyacht completions surged by 31% to 202 vessels.

The growing superyacht fleet means growing demand for the entire ecosystem of the yachting economy – from builders and brokers to marina slips and crews. According to SuperYacht Times, there are currently nearly 6,000 superyachts, three times the number in 2002.

Dazet said a large number of wealthy buyers who entered the market for the first time during the coronavirus pandemic continued to use their yachts. Many yachts are being upgraded, which means the high water mark for the yachting economy is likely to continue to rise.

“The customer base has permanently expanded,” he said.

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