Yachting - What investment opportunities does the luxury yacht market offer?
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The travel world has changed significantly in recent decades. Of course, package holidays or holidays in one's own country are still “popular”. But younger holidaymakers in particular strive for individualism, adventure, exclusivity, flexibility and sometimes luxury. Yachts meet many of these requirements. Because it is precisely with temporarily chartered boats that holidaymakers experience the dream of freedom, exclusive experiences and enjoy a special flair. But the luxury yacht segment is also very exciting from an investor's point of view.
Tangible value: Superyachts
Anyone who has traveled in beautiful coastal areas, such as Croatia, Greece, France or in non-European countries, in recent years, may have noticed that an astonishing number of luxury yachts are on the water. According to data from SuperYacht Times, there are over 6000 superyachts this year with a length of more than 30 meters that navigate our oceans. But boats in this category are only for the super-rich.
If you look at the costs associated with owning a superyacht — the construction or purchase price as well as the annual operating costs, they are among the most expensive luxury goods or tangible assets in the world. Some of the biggest superyachts cost hundreds of millions of dollars — but a private jet would be a bargain.
Die Prices and costs for luxury yachts However, vary greatly depending on size, equipment and construction. Roughly, you can use these target prices as a guide:
- Smaller luxury yachts (80 to 100 feet, approx. 30 m): The price for these yachts starts at around ten million dollars. They offer luxurious yet compact accommodation and limited customization options.
- Medium-sized yachts (up to 150 feet, approx. 46 m): A semi-custom yacht in this category costs between 12 and 30 million dollars. Fully customized models can drive the price up to $50 million or more.
- Large superyachts (over 150 feet): These can far exceed the price limit of 100 million dollars. A prominent example is Jeff Bezos' sailing yacht “Koru” with 417 feet in length, which is estimated at 500 million dollars.
- Top end yachts (over 300 feet): Yachts such as Roman Abramovich's “Eclipse” (533 feet) can cost over 600 million dollars.
But the mere purchase price is by no means enough. In addition, yacht owners should have running costs (maintenance, crew, berths, insurance...) at around 10-12% of the purchase price annually (!) Plan for it.
Given this, the layman is likely to ask himself: “How can they afford that?” For example, by some owners chartering their yachts - i.e. renting them out temporarily through agencies or specialized companies. Potential increases in value in the event of a sale can also play a role.
Return with tailwind
Custom yachts from renowned shipyards can increase in value, especially if they are regularly maintained and modernized. A well-rented yacht can bring in 5-10% of the yacht value annually. Chartering a luxury yacht also offers numerous other benefits. Regular maintenance and repair by a professional crew enables potential problems to be identified at an early stage and expensive repairs avoided. In addition, a successful charter yacht increases its market value, which makes it more attractive to potential buyers. Another benefit is the possible tax benefits, as certain expenses, e.g. for modernizations, can be deducted from tax, which reduces operating costs.
Digitalization and the desire for luxury are driving growth
Owners of exclusive motor or sailboats also operate in a fast-growing market — driven by the desire for exclusive and private travel experiences, an increasing number of ultra-high-net-worth individuals (UHNWI) and increasing digitalization. Yacht charter companies use digital platforms that allow interested parties to search for, compare and reserve yachts directly online, which significantly simplifies and speeds up the entire booking process.
For the reasons mentioned above, luxury yachts are becoming increasingly popular. The size of the global yacht charter market was estimated at 7.74 billion dollars in 2023. The market is expected to grow from 8.33 billion dollars in 2024 to 15.53 billion dollars in 2032 and to grow at an annual rate of around 8% over the forecast period.
However, potential investors should carefully consider the costs and risks. As already described, the purchase of a luxury yacht involves high purchase and operating costs, but offers attractive return opportunities through a possible increase in value and income from charter operations.
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