UK-based Genus Marine – Europe’s leading berth broker – reports the first real signs of recovery with its latest figures from boating hotspots around Europe

“Summer is usually the quietest time of the year for marina real estate,” explains John Brewster, Director of Genus Marine & Leisure. “This summer, however, we have seen a marked increase in sales activity in the Mediterranean with enquiries in the month of July outstripping all of the 2008 summer months combined.”

“The majority of berth sales occur in the off-season between late autumn and spring and, after a pretty gloomy start to 2009, we were all expecting a very quiet summer period. General negativity in the financial media and the subsequent apathy from owners has compounded to keep the reins on berth sales in the last nine months. But, figures for July 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’ we have ever experienced in the last 25 years was 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.”

“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.”