The Superyacht BOOM … can it last?
More than 700 superyachts bolstered the fleet over the past two years; a global order book exceeding 1,000 for the first time in more than a decade; soaring brokerage sales setting new records. The 18 months between summer 2020 and the end of 2021 will go down as the strongest growth period in superyachting history – and it caught most people by surprise, coming in the wake of the deepest global recession in 90 years and a pandemic that shut down international travel.
Yet a rapidly rising stock market, rebounding global economic growth and a desire for luxury and freedom after lockdowns have all contributed to a remarkable increase in demand for superyachts. And it showed no signs of slowing as 2021 ticked over into 2022 with the brokerage market recording a strong first quarter. The boom has caused challenges as well as opportunities for shipyards and brokers, with limited build slots and stretched supply chains. But like all booms, it will come to an end. The question is: when?
The obvious and immediate threat to this record run is Russia’s attack on Ukraine, first and foremost an appalling human tragedy and an affront to international law. The EU, US and allies’s sanctions will all but shut out Russians, who account for 10 to 15 percent of all superyacht purchases, from the market.
Furthermore, the war is affecting the global economy. On March ro, International Monetary Fund managing director
