Yachts are hardly a mass market product and yet the superyacht market has carved out a niche in being even more exclusive, but how much does a yacht cost to build, buy or rent? Let's take a look at the current state of the market.
Since the 1980s the amount of superyachts, ie yachts over 24 meters, has grown 600% with the worldwide fleet now counting over 10,000 vessels compared to around 1,500 in 1979. Deliveries of large sailing yachts have however remained constant throughout the decades with around 45 S/Y built per year since the 70s.
This exponential growth was brought mainly by the construction of motor yachts. Indeed, the ratio of M/Y to S/Y built has exploded from 2 in the 1980s to a whooping 7 motor yachts delivered for each sailing yacht under construction today. As a result sailing yachts have often retained value better than their counterparts.
The expansion of the worldwide fleet of superyachts has also had another significant effect, the accelerated depreciation of yachts on the brokerage market. A 43-meter Benetti Vision 145 could for example be built at a cost of €21,9 million in 2014 whereas a 10-year old model in mint condition such as M/Y Dia's could be bought for just €8 million on the brokerage market.
This large difference in price is however not unique to this case and can be found across almost all yacht manufacturers. Heesen, a well-known Dutch shipyard, is currently selling its 47-meter Project Ruya for €29,9 million. Its 2012 sistership, Lady Petra is however up for sale at the same time asking €22,500,000, down from her initial asking price of €31 million when it was first listed for sale in 2014.
On top of the initial purchase price must however also be added the yearly maintenance fees amounting to roughly 10% of the initial price of a new build. For a 55-meter yacht for example, this would represent close to $3 million per year.
Crew salaries today represent the largest of those expenses with the starting salary of a deckhand onboard a 50-meter yacht orbiting around $40,000 per year and going over $200,000/year for captains on larger yachts. The balance sheet is further burdened with fuel costs, repairs and operating costs such as uniforms and food for the crew.
To offset the operating costs, some owners turn to renting out their yachts to guests, which has created a market with near 1,400 yachts for charter throughout the world. Before the subprime crisis, these could represent a genuine business opportunity with some UHNWIs even building superyachts with solely charter in mind.
Few yachts are however able to fully recoup their maintenance costs in today's market. The 72-meter Axioma for example, one of the most popular charter yachts on the market, generated over €7 million in revenue from charters in its first year alone. Yet, its current asking price of €68 million suggest these have barely outperformed operational costs.
Many have therefore claimed that chartering a yacht has become the only financially justifiable option. It can indeed be argued that a like-new, 50-meter yacht could be chartered for near €250,000 per week during the summer season. To those would be added around 25% in fees of advanced provisioning, which would cover food, fuel, berthing fees and other expenses whilst charter guests are on board.
Annual operating costs of such a yacht would be near €2 million per year, which equates to nearly 6 and a half weeks of charter. It would therefore seem one would need to spend at least two months onboard to justify the operating costs, let alone the full purchase price. Yet, every year, dozens of new build projects are started despite this financial reasoning.
Prior to the 2008 crisis, an industry of yacht flippers had emerged with clients buying a slot for a superyacht at a prestigious shipyard and then reselling the yacht slightly before its launch. US businessman, Warren E. Halle had ordered 3 yachts from Lurssen in 2003, which he paid for €48 million a piece plus the cost of interior finishing. As following legal proceedings revealed, he later sold the first yacht (Project Marlin) for €65 million in 2006, the second one for €71,5 million in 2008 and kept the third one (Martha Ann) for himself, which is now on the market asking $79 million.
This market has since evaporated with many shipyards that had committed to build on speculation, in order to retain ownership of their slots throughout the construction, facing difficult financial times. Italian shipyard Baglietto posted losses of €105 million in 2009 and was ultimately only saved by the Gavio Group, which brought it back to financial stability. Yet, despite this turmoil, at least 700 superyachts are currently under construction.
Photo via Dutch Yachting
The megayacht market is at the moment particularly strong with at least 6 projects over 100 meters currently in build at Lurssen alone and several other shipyards working on their largest yachts to date such as Benetti and Feadship. Historically this high demand for megayachts in the past decade has allowed their sales prices to remain higher than construction prices due to the gains in time a brokerage purchase offered.
In 2011 for example, the late Russian oligarch, Boris Berezovsky managed to sell his Project Darius, under construction at Lurssen at the time, for €240 million to the Al Futtaim. He had however paid just €148,5 million, plus interior finishing costs, for the project as became known in a legal process that followed.
A growing concern for superyacht builders has however become the increasing gap between the increasing number of individuals with a net worth of over €250 million and the stagnant number of new build projects. Some have speculated that a possible explanation for this shift is a disinterest with the new generation of younger UHNWIs to own yachts and an increasing preference to charter by picking from an ever-growing fleet.
Dutch shipyard, Feadship has however delivered the 70-meter Joy, first yacht to boast an exterior design by Bannenberg & Rowell in modern history, to their youngest client yet. As a testament to her owner's young age, the superyacht features a basketball court on the bow and a gym surrounded by glass walls on the bridge deck.
Despite all the financial reasoning that might nudge UHNWIs to charter rather than own, over 350 superyachts were sold in 2016 showing that the reasons behind owning a yacht might actually be dominated by the pleasure and freedom that owners get from their own superyacht.
Ferretti Yachts has announced the Ferretti Yachts 800, a new flybridge yacht designed to enhance the cruising experience through a combination of elegance, functionality, and privacy. The project, presented at Boot Düsseldorf, is under construction at Ferretti Yachts’ Cattolica shipyard.The Ferretti Yachts 800 features exterior design by Filippo Salvetti and interior design by IdeaeItalia. The yacht has an overall length of 24.47 meters and a maximum beam of 5.91 meters. A version with a shorter stern platform is also available to comply with the 24-meter limit established by French law.Filippo Salvetti commented, “With the introduction of a new aesthetic… the design of Ferretti Yachts 800 embraces a bold and functional approach that elegantly redefines the distribution of spaces between the main deck, the bridge and the flybridge.”Key features include large windows, optional sliding door on the starboard side, segregated spaces, and a 40 sq. m flybridge. The interior has a Classic or Contemporary mood option.Ideaeitalia stated, “Our aim with Ferretti Yachts 800 is to breathe life into a boat concept that’s future-forward without sacrificing the brand’s signature refinement… It’s a project that redefines the on-board experience through solutions that combine aesthetics and functionality."The yacht includes a 7 m2 beach area, a 15 m2 cockpit, and a salon with two-meter ceiling height. The lower deck has a master suite, VIP cabin, and two guest cabins, providing eight berths and four en suite bathrooms. The flybridge area is 40 sq. m.The Ferretti Yachts 800 can be powered by two 1,550 HP MAN V12 engines (27 kn top speed/15 kn cruising speed) or two 1,800 HP MAN V12 engines (31 kn top speed/27 kn cruising speed).The Ferretti Group, led by Chief Executive Officer Alberto Galassi, is now one of the world’s leaders in the construction and sale of luxury yachts and pleasure vessels, with a unique portfolio of brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN, Custom Line and Wally.Credits: Ferretti Group
March 3, 2025
AES Yacht has launched the 35-meter custom superyacht Mereley I, with exterior and interior design by Milan-based studio Hot Lab, part of the Viken Group. The yacht is now available for purchase through Northrop & Johnson.Enrico Lumini, Hot Lab co-founder and design director, describes the vessel as positioned between a modern explorer and a sportier yacht: "Her volumes clearly reference the tradition of expedition vessels, yet at the same time have a more dynamic and sporty spirit. We wanted to give a sleeker look to a classic explorer."Built to RINA classification, Mereley I features a semi-displacement steel hull, aluminum superstructure, and a transatlantic range of 3,800 nautical miles at 11.5 knots. The design emphasizes contrasts, utilizing dark greys, blacks, and natural tones. Key materials include oak, lacquered finishes, and 3D-textured surfaces. The yacht accommodates up to 12 guests in a full-beam owner's suite and four additional cabins.Erdem Biçer, shipyard manager and partner at AES Yacht, stated: “Our goal was to design a striking, modern explorer yacht with expansive windows, open bulwarks, and a spacious layout… and the Hot Lab team executed everything to perfection.”Deniz Kaymaz, yacht broker at Northrop & Johnson, commented: “More than just a yacht, Mereley I is a statement of ambition, sophistication, and the pursuit of adventure… Crafted with precision and vision, this yacht isn’t just about reaching destinations; she’s about redefining the journey."AES Yacht is planning a second hull and is collaborating with Hot Lab on a 40-meter version. Antonio Romano, commercial and marketing director of the Viken Group and co-founder of Hot Lab, expects success in the charter market: “Mereley I is a perfect example of how it is possible to build a magnificent yacht from scratch in Turkey, featuring cutting-edge characteristics and top-tier aesthetic and technical finishes."AES Yacht is located in Kocaeli Free Zone, Turkey. The company is building mega-yachts made of steel and aluminum. Credits: Northrop & Johnson
March 3, 2025
At the Dubai International Boat Show, Majesty Yachts, part of Gulf Craft, announced the sale of the first unit in its 44.2-meter Majesty 145 series. The news was shared during a press conference led by Gulf Craft chairman Mohammed Hussein Alshaali.The Majesty 145 stands as a mid-range offering within the lineup, positioned between the 32.3-meter Majesty 100 Terrace and the 54.4-meter Majesty 175. Interior design by renowned Italian studio Cristiano Gatto Design features a neutral color scheme complemented by warm lighting and navy blue accents. The studio, known for its work on Gulf Craft's flagship Serenity MRF, brings a refined aesthetic to the vessel.While specific details remain limited, renderings showcase notable amenities such as dual dip pools located on the main deck aft and sundeck, along with an upper deck al fresco dining area and a lounge designed for panoramic ocean views.Chairman Alshaali highlighted the significance of the sale, stating it reflects client confidence in Gulf Craft's design and engineering capabilities. He expressed enthusiasm for the upcoming launch, emphasizing the brand's commitment to setting new standards in the yachting sector.The first Majesty 145 is scheduled for launch in spring 2026.Since the company’s inception in 1982, Gulf Craft has grown to become one of the top seven shipyards in the world: once a builder of small fishing boats in its modest premises, which was a genuine passion for Gulf Craft, they then established their credentials as a leader of innovation and technology in the yachting industry. With five brands in their product portfolio ranging from 31 to 175 feet, Gulf Craft manufactures yachts and boats that appeal to a wide audience, such as touring passenger vessels, Silvercraft family day boats, Oryx Sport Cruisers, Nomad Explorer Yachts, and the flagship Majesty Yachts.Credits: Gulf Craft
February 28, 2025
The Board of Directors of Ferretti S.p.A. has approved the consolidated preliminary financial results for the fiscal year ending 31 December 2024. Key highlights include:Order Backlog: Reached an all-time high of €1.7 billion, marking a 25.5% increase compared to September 2024 and an 11.6% rise over December 2023.Revenue Growth: Net revenue from new yachts increased by 5.6% to €1,173.3 million compared to 2023.Profitability: Achieved an adjusted EBITDA margin of 16.2%, exceeding expectations and showing strong operational efficiency.Net Profit: Rose by 5.6% to €88.2 million compared to the previous year.Board Changes: The company appointed two new directors – Tan Ning and Hao Qinggui – and restructured its committees.Alberto Galassi, CEO of Ferretti Group, expressed optimism about these results, attributing them to the company's innovative strategies, commitment to quality, and customer trust. He emphasized the group's focus on expanding globally, investing in technology, and enhancing products to reinforce their market leadership.These figures demonstrate Ferretti Group's robust financial health and continued success in the luxury yacht industry.The Ferretti Group, led by Chief Executive Officer Alberto Galassi, is now one of the world’s leaders in the construction and sale of luxury yachts and pleasure vessels, with a unique portfolio of brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN, Custom Line and Wally.Credits: Ferretti Group
February 28, 2025
Feadship announces the completion of Project 714, a 79.95-meter yacht destined to become a significant addition to its fleet. Having left the construction shed at the Aalsmeer facility, the vessel is now undergoing final outfitting and preparation for sea trials.Designed by RWD, Project 714 boasts an exterior characterized by sculpted curves and a striking blue hull, reflecting the pinnacle of sophistication and style. Feadship’s renowned attention to detail is evident throughout, ensuring that both aesthetics and performance meet the highest standards.Naval architecture by Feadship De Voogt Naval Architects plays a crucial role in delivering optimal performance, while the yacht also incorporates cutting-edge technology through the FEAD (Feadship Advanced Electrical Drive) program. Featuring a diesel-electric hybrid propulsion system, Project 714 benefits from increased electrical storage capacity, surpassing previous iterations like the Savannah. Two contra-rotating thrusters replace conventional drive shafts and rudders, minimizing drag and improving efficiency.Computational Fluid Dynamics (CFD) analysis informed the design of the pods and propellers, resulting in reduced vibration and enhanced comfort. This approach underscores Feadship’s commitment to innovation and sustainability, reinforcing its leadership in the superyacht industry.Based in the Netherlands and with roots dating back to 1849, Feadship was formed as a group in 1949 as a marketing partnership between six Dutch shipyards, de Vries Lentch, Van de Stadt, Witsen & Vis, Akerboom, De Vries Scheepsbouw and Van Lent Shipyard, and De Voogt Naval Architects. Feadship is well-known as one of the Netherlands’ most elite yacht builders and delivers superyachts from 50–100+ meters in length.Credits: Feadship
February 28, 2025