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The global art market is facing its second consecutive year of declines, with demand for high-end works diminishing and a shift towards lower-priced pieces among a new generation of buyers, according to a recent survey. Auction sales at major houses like Christie’s, Sotheby’s, Phillips, and Bonhams dropped by 26% compared to 2023 and 36% from the market peak in 2021. The survey also noted a decrease in the percentage of wealthy collectors planning to purchase art in the next year, along with an increase in those looking to sell.
Despite these challenges, there is a sense of optimism among wealthy collectors, with 91% expressing confidence in the global art market’s performance over the next six months. However, various factors such as geopolitical concerns, economic weaknesses in certain regions, and higher Interest rates are contributing to the overall decline in art sales.
The survey highlighted a generational shift in the art market, with older collectors selling off works from their collections while younger collectors, particularly Gen Xers and millennials, opt for more affordable and modern pieces. This trend has led to an oversupply of high-priced Impressionist and Abstract works, with the $10 million-plus segment now being the weakest in the market.
Overall, wealthy collectors are decreasing their exposure to art, with the average allocation to art dropping from 22% in 2021 to 15% in 2024. The super-wealthy, however, still maintain a significant portion of their assets in art, with those worth $50 million or more holding an average of 25% in art.
One of the biggest concerns for collectors is the free movement of art internationally, followed by legal issues in the art trade and ethical considerations regarding artists. The survey also noted that the upcoming great wealth transfer could lead to a significant shift in art ownership, with 91% of collectors having works inherited or gifted to them.
Overall, while the art market may be experiencing some challenges, there is still a sense of optimism among collectors, and the industry is hopeful for a post-election rebound in the near future.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.