Research-firm Wealth-X and luxury-yachting specialty company Camper & Nicholsons got together to produce their first-ever yacht report. They analyzed ultra-high-net-worth individuals, defined as those with over $30 million, across five continents to build a profile of a typical superyacht owner. The big news: Sales are up because yacht prices have, in some cases, been cut in half over the last five years. Yacht prices have been drastically cut in the last five years, spurring sales.
Superyachts are usually packed with cinema and music centers, gym facilities, indoor and outdoor bars, and a full-service staff hired to look after the decks, clean, and cook for you and your guests. A superyacht costs $10 million on average, according to the report. Factor in the maintenance costs, dockage fees, insurance premiums, and fuel, and you need at least 10 times that amount in net worth to own one—or $100 million, says Winston Chesterfield, research director at Wealth-X.
Superyacht Trends
Some 4,500 superyachts roam the world today with around 150 delivered to buyers annually. While the report defines superyachts as those over 30 meters in length, the average length of the floating home is 44 meters. Sales have increased since five years ago by 24%, coupled with a decline in prices. Motor yachts, for example, are now around $11 million, compared to $16 million in 2011, and sailing yachts go for around $6 million, half their $12-million-average price tag from five years ago. "If you are dollar based or the equivalent, the euro-priced vessels are far more attractive," says Michael Payne, CEO of Camper & Nicholsons, attributing the strengthening dollar to the drop in overall prices.
Still, $10 million, just to get a yacht, let alone run it, isn’t chump change. Are they worth the price? People are "valuing time and the experience a lot more," says Chesterfield, and a yacht is the ideal vehicle to ferry around family and friends with a sense of adventure amidst the comforts of luxury. On a yacht you can both enjoy an outdoor entertainment system under the stars and hook a left towards the Galapagos Islands. A vessel like that can also get you into hard to reach corners of the earth for National Geographic-type experiences. Chesterfield says the report revealed that the wealthy want to "spend more time on their yachts, take trips onshore, and have a look around."
One way to taste the life, before spending the big bucks, is to charter a superyacht. The average value of charter is $115,500 to $190,000 a week. Alternatively, if you are frugal by nature, consider buying a second-hand 10-meter day boat, which runs around $25,000, or an older 15-meter vessel that could be had for $150,000 to $200,000. But, of course, such boats are primarily used for day trips, when staying in a comfortable villa, as they can be "quite cramped and claustrophobic" if you’re stuck inside for long periods, says Chesterfield.
Not for everyone, undoubtedly, but if you are looking for quality time with the family and memories to last a lifetime, consider a yacht. There are few experiences to equal dropping an anchor in a remote, azure-colored bay off Madagascar, or cruising past a colony of puffins on a rocky outcrop off Greenland.
This article originally appeared in Barron's Penta.