2023 MARKET OUTLOOK

Sales in Q1 2023 were, as expected, slower than in Q1 2022, driven by a market slow down in Q3 2022. In the coming months, we anticipate more yachts entering the market, more price reductions and the number of deals returning to more regular levels. According to the past years' sales records, we anticipate that the first half of 2023 will be similar to 2019 and 2020, with approximately 350 units sold.

‣ GLOBAL SALES NORMALISING AFTER A 3 YEAR HIGH

We anticipate that in the coming months the market will continue to run at a similar trend with Q1 2023, with more yachts being listed for sale and demand slowing down compared to 2021 and 2022. Sales figures for the first semester are expected to be in line with 2017 and 2020, at a range of 350 to 400 unit sales.

‣ Q2 2023 BUYERS MARKET

As the influx of yachts in the market continues to create a healthier equilibrium between demand and supply, prices are expected to decrease, normalising compared to 2021 and 2022. There are currently over 904 pre-owned yachts over 30m available for purchase. Price drops are primarily expected in the smaller size range, with the percentage value of price reductions expected to increase. We anticipate some owners announcing more price reductions in Q2 2023, to ensure a sale in time for the summer season. With only 336 brokerage units currently available for sale in the 40m+ size category, this part of the market is expected to remain more rigid.

‣ SALES IN THE 50M+ RANGE WILL REMAIN STABLE

In Q1 2023, there was an increase in yacht sales over 50m compared to Q1 2022, representing approximately 10% of total sales. This indicates a continued demand for larger vessels from buyers. In Q2 2023 we expect new build and used yacht sales to be similar to Q1. Eight new builds were sold in Q1 2023 compared to 10 a year before. The small drop in new builds can be explained by limited construction slots availability.

‣ FULL SHIPYARDS’ ORDER BOOKS UNTIL 2026

There are 632 superyachts over 30m currently in build worldwide, with deliveries scheduled for 2023 onwards. Many notable shipyards are already at high capacity, with limited slots until 2027, making new build projects for sale and newly delivered brokerage yachts a great opportunity. Over the coming months, new build yacht prices will remain high due to global inflation and demand for larger vessels. As a result of full construction slots, shipyards have seen a decrease in new build offers or have pushed them back to 2027. Currently, there are 118 new build vessels over 30m being offered by 58 different builders, with delivery dates stretching until 2026 and an average asking price of $26.7 million.

‣ DEMAND REMAIN HIGH FOR LARGE VESSELS

The market share of both new and pre-owned yachts over 40 meters saw growth in Q1 2023 compared to Q1 2022. Last year, the market share of vessels in the 40 meter plus size range was 18%, while it is now at 24% in Q1 2023. This increase in the larger segment of the market indicates a continuing demand for larger yachts among ultra-high net worth individuals (UHNWIs). Historically, the main buyers have originated from the US, Europe and Turkey, and the lack of Russian customers in the past year has not seemed to have had a negative effect on the market.