It's an industry shrouded in secrecy and one-upmanship, but as the credit crunch makes a dent in other financial spheres, the market for superyachts only gets stronger.

This month, an even greater number of them will be moored in Monaco as part of the 2008 Monaco Yacht Show, the industry show case. There will be manufacturers, service providers, equipment suppliers and financiers all there, looking to get a slice of the action.

And rightly so, says Ian Braham, head of marine finance at Lombard, one of the market leaders in marine financing, considering the demand for superyachts has increased 500 per cent in the last 10 years.

To be considered a superyacht, a boat must be technically over 35 metres (or 115 feet) in length, but billionaires like Roman Abramovich, the Russian owner of Chelsea Football Club, continue to push the boundaries.

Just five years ago, Microsoft co-founder, Paul Allen, was considered one of the market leaders with Octapus, his 416-ft boat. Then his arch rival, Oracle co-founder and CEO Laurence Ellison, trumped this with his 454-ft Rising Sun. The crown prince of Dubai trounced both with his 525-ft superyacht shortly after, and now Roman Abramovich is rumoured to have the biggest one under construction, Eclipse, his fourth superyacht, at 550-ft.

"Order a superyacht now, and you have to wait up to three years for it. That's why boats-in-build are appreciating assets. People frequently aren't prepared to wait."

Today, it's thought that there are over 3,700 superyachts in service or on order. In 1997, there were 81 yachts over 30 metres ordered. Last year, there were 435. And this growth continues, according to the Wall Street Journal, who confirmed in June that new orders for yachts over 40 metres have grown 18 per cent on last year already.

"It's the strongest growing area of marine finance at the moment," confirms Braham, who leads Lombard's Marine and Superyachts team of 22, all based in Southampton.

The industry is driven by classic supply and demand. There are a relatively small number of yards that specialise in building superyachts around the world - with some of the high quality ones in considered to be in Europe; Holland, Germany and Italy.

"Order a 40-50 metre yacht now, and you have to wait up to three years for it. That's why boats-in-build are appreciating assets," says Braham. "People frequently come along who are not prepared to wait that long and look to buy one that's already in production." After build, superyachts remain a strong buy, with only light depreciation. "As an investment, they are very good," he confirms.

But buying a superyacht is complex. Along with specifying the accommodation layout, the furniture and fittings, equipment on board, alongside miniscule marine details, there's the financing to organise. Some buyers approach Braham and his team to discuss the requirements before they purchase, establishing a credit line and then looking for a boat. Others approach them when the transaction is underway.

Being involved from the beginning means Braham and his team can add more value, helping the purchaser with advice on build contracts and who to assemble around them as a team, including legal and technical advice.

"The people who are purchasing boats in the most efficient way are those getting a team of advisers around them early. They're the ones getting the right results and being delivered exactly what they want in the end."

There are further financial implications after purchasing a superyacht. Maintenance costs which include a year-round crew, fuel, insurance and mooring are estimated to cost owners 10 per cent of the purchase price annually.

"People who are purchasing boats in the most efficient way are those getting a team of advisers around them."

And that's after you've had your crew trained. A recent shortage of qualified seamen now sees superyacht owners reliant on companies like Flagship Training and the Royal Navy to provide guidance on navigation and seamanship.

But chartering your superyacht is a great way to offset these costs. "You can charge anything from around €70K a week upwards," confirms Braham.

For the cost conscious, yacht timeshares were another option launched on the superyacht market recently. For £2m, timeshare owners are given 34 nights every year on board one of ten £16m luxury yachts designed by architect Lord Foster. So far, Lord Foster has taken up the offer, as has John Lovering, chairman of Debenhams, and Mike Balfour, founding partner of Fitness First gym chain.

Lombard only provides financing to people looking to purchase superyachts, and Braham isn't worried that the scheme will dent the current or future market demand. "For people who have a passion for yachts, these are truly special purchases, and the market for them just goes from strength to strength."

And so the superyacht industry continues to go from strength to strength. With long production times keeping new boat prices up and helping maintain the value of existing ones, this is only likely to change when new luxury shipyards prove they are a reliable alternative to the current few – which will increase supply. Until then, superyachts remain the investment and lifestyle choice of the super-rich and famous.

Are you interested in purchasing a superyacht? To find out more information, contact your Private Banker or Ian Braham direct on ibraham@lombard.co.uk , or Matt Bass on mbass@lombard.co.uk

By Barbara Walshe