The world’s super-rich are left high and dry. Sales of superyachts fell by 17 percent last year, it revealed an analysis of the online magazine Superyacht Times. As the name suggests, superyachts are really big things. Specifically: more than 30 meters long. Space for a whole lot of champagne bottles. Things look even worse for used yachts, where the number of sales even fell by 27 percent.
There are many reasons for the falling sales prices. On the one hand, even the super-rich cannot avoid rising prices. As a result, they also have to slow down a little. Because material and labor costs have recently increased, the luxury ships have become more expensive. The poor super rich.
On the other hand, something like geopolitics is also important in the superyacht market. Russian buyers are now largely absent from the market for newly built yachts, the US media quotes Business Insider (BI) from market analysis. After Russia’s attack on Ukraine, Western states imposed sanctions on the Russian elite.
The impact of the sanctions will continue to be felt in the coming years, writes BI. “The top end of the market has been hit by the Russian withdrawal,” said Ralph Dazert, news director of the Superyacht Times, the US medium. However, the market is beginning to recover again, especially with inquiries from the USA. Thanks to the strong US economy, the yachts are now being delivered to Florida instead of to the Russian oligarchs.
Until now, American and Russian super-rich people have had different tastes. According to yachting experts, Russians tend to order very extravagant and very large yachts. For a long time, Americans liked things a little more modest. If you can put it that way, after all it’s about the super rich. However, almost a quarter of all superyacht sales last year were made by Americans. And the yachts are getting bigger and bigger. The average length of a Saudi-owned superyacht is just over 62 meters, compared to just under 61 meters for Russian buyers and 54 meters for Americans.
Champagne is also being drunk less – coincidence? Hardly likely
True, the flood of wealthy buyers who entered the market for the first time during the Covid pandemic continue to use their yachts, says Dazert. Many would even upgrade their boats. Nevertheless, he expects a slight decline in the number of new yachts sold this year.
Other luxury goods are also affected by falling demand. The French luxury group LVMH announced its financial figures for the first quarter of 2024 on Wednesday. The luxury giant owns brands such as Moët & Chandon Champagne, Louis Vuitton and Dior. Group sales fell particularly sharply in the “Wine and Spirits” division compared to the same quarter last year, with a decline of 16 percent. The French are now blaming bubbly, of all things.
On the other hand, if fewer new yachts are sold, there will also be fewer ship christenings. During this ritual, the newly built ship is given its name – and a champagne bottle is also smashed on the hull to celebrate the day. So you could see a connection.