Superyacht sales plunge as Russian oligarchs drop out of the market

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Superyacht sales plunged in 2023 as long waiting lists, soaring costs and sanctions from oligarchs hit demand, according to a new report.

Sales of new superyachts (yachts over 100 feet long) fell 17% last year, according to the new State of Yachting report from SuperYacht Times. There were 203 sales of new superyachts in 2023, compared to 245 in 2022 and a record 313 in 2021.

Ralph Dazert, head of intelligence at SuperYacht Times, said a buyer placing an order today for a new yacht over 200 feet faces wait times of three to four years due to backlogs resulting from the pandemic. Prices are also skyrocketing due to rising labor and material costs.

Dazert said he expects sales of new superyachts to “decline a little further this year” given continued costs and delays.

Larger superyachts were hit hardest, with sales of yachts over 200 meters, or around 650 feet, down 40%. The main reason for the sharp decline in superyachts is due to wealthy Russian buyers withdrawing from the market following the country’s invasion of Ukraine in 2022, according to the report.

“The Russians tended to order very extravagant, very large yachts,” he said.

Americans are picking up some of the slack, accounting for nearly a quarter of all superyacht sales last year. And while Americans tend to build smaller yachts than Middle Eastern and Russian buyers, American boats are getting bigger and bigger.

The average length of a Saudi superyacht is 202 feet, compared to 200 feet for Russian buyers and 177 feet for Americans, according to the report.

Even though new sales have declined, yacht completions have increased. This data represents yachts ordered during the pandemic frenzy that have just been launched. The number of completions jumped 31% in 2023 to 202 superyachts.

The growing fleet of superyachts translates into growing demand for the entire ecosystem of the yacht economy – from builders and brokers to marina docks and crew. There are now nearly 6,000 superyachts, triple the number in 2002, according to the SuperYacht Times.

Dazert said the flood of wealthy buyers who entered the market for the first time during Covid continue to use their yachts. Many are modernizing, meaning the yachting economy’s record high will likely continue to rise.

“The customer base has constantly expanded,” he said.

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