Are you a property developer looking for your next best investment? You might want to consider yachts and yacht construction. While it may initially seem unrelated to luxury property, there are actually several similarities that will give you an edge.
So, if you’re curious and would like to learn how yachts can assist your investment strategy, here are our top reasons.
The shifting landscape of luxury
Luxury is always changing, but its main defining features are quality and exclusivity. This is just as accurate for high-class properties as for yachts.
Additionally, the best assets are often both investment opportunities and enjoyable in their own right. Just like with exclusive properties, affluent individuals seeking novel experiences and unique assets can find both by purchasing one of several high-quality yachts for sale.
Synergies and cross-promotion
Developers who already understand high-end clientele have a significant advantage, as it can be easier to sell a yacht if a client is already purchasing a luxury beachfront home. Entrepreneurial individuals can take full advantage of this potential for cross-promotion, leading to even greater returns.
Additionally, experienced developers will understand the importance of high-quality design, construction, and project management. Their extensive experience easily translates from building development to yacht building and marina construction.
Untapped market potential
The yachting market is far from saturated. With a diverse range of options, including Explorer yachts, sustainable yachts, and luxury yachts, there are many avenues for savvy developers to capitalise on emerging trends.
Diversification and risk mitigation
For those interested in portfolio diversification, yacht construction presents an exciting opportunity. It can reduce reliance on a potentially volatile real estate market and spread risk across different revenue streams. Ultimately, you’ll also own valuable assets, which can be held or sold as suits your needs.
In turn, this makes your investments more secure and provides you with an asset to be used throughout the year. Alternatively, you can charter your yacht instead, generating an additional revenue stream.
Marina development
If you want to take your investment one step further, you could invest in building a marina. This complementary investment provides you with a location to harbour your yacht while not in use, earn revenue from other yacht owners, and potentially find clients who may want a new yacht.
It’s the perfect opportunity to maximise the potential revenue from related investments.
Branding and prestige
Yachts are associated with exclusivity and prestige worldwide, and owning a superyacht is the dream of many. By adding yourself to the ranks of yacht owners, you gain access to a powerful marketing tool for both real estate and yachting adventures. Offering success and sophistication, it can help enhance your brand image and become a valuable networking tool.
Challenges and considerations
Of course, yachting also has several challenges. Its need for specialised labour and various regulatory hurdles can be complex to overcome, however, with planning and the right partnerships this remains an ideal opportunity for those who can see it through.
