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Executive summary
During the first half of 2024 (H1), the global sales market experienced a significant decline, with demand for both new and pre-owned yachts decreasing compared to the previous year. This trend resulted in a 29% reduction in market activity, with a total of 366 yachts sold, including 103 new yacht transactions. The brokerage yacht market provided some stability during this period. Over the first six months of 2024, the global sales market generated a total transactions value of $3.5 billion, a decline of 12% versus a year ago. In fact throughout the first half of the year, the average value of yachts sold decreased by 25% in both the new and used sales markets.
After a slow start in Q1 2024, the global yacht sales market exhibited higher activity during the second quarter. Despite this modest recovery, overall sales reached their lowest point in recent years, with pre-owned yacht sales showing resilience while new build sales declined. This ongoing decrease in demand began in the third quarter of 2022, when the market started to normalize with supply surpassing demand, a market trend that persisted throughout 2023 and continued into H1 2024. Despite the overall decline in global sales, brokerage transactions and prices remained robust, with several significant deals involving large yachts being closed.
Looking ahead, we anticipate that sales in the third quarter of 2024 will reach around 200, with approximately 400 sales deals expected for the second half of the year. Considering the current market status influenced by external factors, we project that the sales market trend for the third quarter of 2024 will align with levels seen during Q3 2018-2019.
The purpose of this report is to provide an overview of the state of the sales market during the first half of 2024 and an outlook into the third quarter of the year. We take a close look at the superyacht industry and in particular at all yachts 80' (24m) and above. IYC is actively monitoring the sales market by utilizing analytics to track industry trends and client behavior that have a direct impact on the overall performance of the industry.
The IYC Intelligence Team
H1 2024: Yachting Industry Overview In Numbers
Yacht Sales Overview - What You Need To Know
ONGOING DECLINE
IN GLOBAL SALES
During the first half of 2024, the global sales market experienced a significant decline, with demand for both new and pre-owned yachts decreasing compared to the previous year. This trend resulted in a 29% reduction in market activity, with a total of 366 yachts sold, including 103 new yacht transactions. The brokerage yacht market provided some stability during this period.
After a slow start during the initial quarter of 2024, the second quarter demonstrated signs of improvement with an increase in yacht sales. However, sales figures for Q2 2024 remained below those of Q2 2023. Overall, the first six months of 2024 marked a notable decline in the yacht sales market, reaching its lowest level in recent years and even falling below the transaction numbers recorded in 2020 during the pandemic.
INCREASED DEMAND IN THE 131’-164’ (40-50M) SIZE RANGE
Despite a global decline in yacht sales, market data for the first half of 2024 indicates a growing demand for yachts within the 131’-164’ (40-50m). This segment saw significant growth, accounting for 17% of all transactions, driven largely by increased activity in the new yacht sector within this category. For context, the equivalent figure for the first half of 2023 stood at 12%. Meanwhile, yacht sales over 164’ (50m) remained stable compared to the same period in 2023.
STABILIZED SELLING PRICES
The global yacht sales market generated a cumulative transaction value of $3.5 billion over the past six months, marking a 12% decrease from the first half 2023. This decline in total sales value is correlated to lower average selling prices for both brokerage and new yacht deals due to reduced demand, reflecting a 25% reduction in average prices. The price correction was also influenced by more significant price reductions applied to sales listings during the first half of 2024 compared to previous years.
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In an effort of to drive yacht sales in a slower market, many owners agreed to price reductions during the first half of 2024. Despite price adjustments the market did not see a clear impact on the volume of new market entries or the number of transactions. The average price reduction amounted to $556.000, representing a 37% increase compared to H1 2023. The overall percentage of price reductions applied to sales listings during the first half of 2024 was 6.7%, the highest rate in recent years.
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Overall, the average last asking price for yachts sold in H1 2024 returned to more typical levels, aligning more closely with pricing observed in H1 2019.
In 2024 to date, the market has exhibited a growing disparity between yacht supply and sales, reaching its lowest ratio observed in recent years, comparable to H1 2019. Although supply far exceeded demand during the first half of the year, new market entries experienced an 16% decline compared to H1 2023 and even a notable 27% decrease between Q1 and Q2 2024, leading to a more challenging market state for sellers in certain size ranges. Nevertheless, yachts entering the market during this period saw their initial asking prices rising by an average 20% in comparison to the same period last year. This increase in pricing can be attributed to the listings of larger yachts by average length and volume.
LESS TIME ON MARKET
With a continued reduction in supply and more reasonable average last asking prices, yachts have spent less time on the market before being sold. Specifically, the average time a yacht remained for sale decreased by 30 days (from 532 days in H1 2023 to 501 days in H1 2024), largely due to quicker transactions in the brokerage market. Conversely, new build yachts took longer to find buyers during the first six months of 2024 compared to a year ago, likely due to lower supply and more rigid pricing in that segment.
SALES CONSISTENCY FOR IYC
IYC performed positively in sales, securing a total of 23 yacht deals over 80’ (24m), including four new orders, during the first half of 2024. The sales volume for IYC is consistent with the same period last year, positioning the company among the top brokerage firms. Additionally, the company announced 30 new central agency sales listings during H1 2024, putting IYC in the top brokerage firms in this regard.
