Super Yacht Berths Selling Well

Better than expected demand for Mediterranean berths

Summer is usually the quietest time of the year when it comes to the buying and selling of for marina real estate The majority of berth sales occur in the off-season between late autumn and spring. Figures for July 2009 released by UK-based berth broker Genus Marine suggest that there is backlog of pent-up demand that is now venturing back into the market place.

The new level of demand is thought to be down to a number of factors, not least of which is the increasing annual rental rates charged by Mediterranean marinas – with fees up an average of 7% from the same period last year, making it even more financially beneficial to purchase a berth instead of renting. Some owners are looking to change locations to less expensive alternatives; others may have weathered the worst of the downturn and are looking at returning to the market to secure a bargain, there will also be a small number of new owners looking for their first berth.

Historically, the onset of summer reduces baseline market activity by between 50% and 60%. The largest ‘summer lull’ experienced so far was in 1991 with a seasonal downturn of over 90% and the smallest was a decrease of 23% in 2007. This year however, following three consecutive quarters without growth, the usual market trend has reversed, with activity in July increasing fourfold from the previous year, a better result than anyone had predicted.

John Brewster, Director of Genus Marine & Leisure said, “Although there are some people holding out for unrealistic money, the expectancy from the market is finally coming into line with reality, and we are experiencing a period of fluidity once more. There is still a relative shortage of berths in the Mediterranean and this is helping to keep values higher than comparative land-based real estate.”