The behavior of high-net-worth individuals (HNWIs) in the art market is changing, according to a recent survey by Art Basel and UBS.
The survey found that HNWIs are increasingly turning to new art dealers, with 88% of collectors engaging with at least one new gallery in the past year. On average, collectors patronized 17 galleries in 2024, up from 13 in 2019. This shift in behavior reflects a growing willingness among collectors to explore different avenues in the art market, despite economic challenges such as high interest rates and global tensions.
The survey also revealed a trend of collectors diversifying their purchasing channels and price points. HNWIs are engaging with a wider array of galleries, including newer entrants to the market. This shift has the potential to expand the market's base and foster growth in more affordable art segments, contributing to greater stability in the future. Dr. McAndrew noted that collectors are moving away from high-end sales and seeking out new opportunities and more accessible price points.
Despite the challenges faced by the art market, there is a growing sense of optimism among collectors. A significant 91% of HNWIs expressed confidence in the market's performance over the next six months, up from 77% at the end of 2023. This renewed optimism may indicate a broader recovery trend as collectors adapt to changing market conditions and explore new avenues for investment.
Another important factor in the art market is the impending transfer of wealth among the wealthiest collectors. It is estimated that over the next two to three decades, more than $6 trillion in wealth and assets will be passed down to heirs and charities. The survey found that 91% of collectors have acquired artwork through inheritance or as gifts, with 72% retaining at least one of these pieces. This intergenerational wealth transfer could significantly influence the art market as new collectors enter with different tastes and preferences. While tastes may shift, the value placed on inherited artworks remains strong among collectors, potentially leading to a more diverse art market as new generations bring their unique perspectives and interests.
In summary, the Art Basel and UBS survey highlights a transformative period for high-net-worth collectors in the art market. As collectors navigate economic challenges and embrace new dealers, there is potential for growth in more accessible art segments. The expressed optimism among collectors, coupled with the impending wealth transfer, suggests that the art market may be on the verge of significant evolution, paving the way for a more inclusive and diverse future.