Last year, global art sales experienced a 4% decline, amounting to around $65 billion. Affluent buyers became more cautious in their acquisitions due to factors such as inflation, high interest rates, and political instability.

As a result, wealthy clients took longer to make purchasing decisions. Art auction sales decreased by 7%, while dealer sales dropped by 3%, primarily due to reduced demand for high-value art and a shift towards lower-priced pieces.

China was the only country to see growth in art sales, with a 9% increase in transactions, making it the second-largest art market globally after the U.S. This growth was attributed to a rebound in activity from Chinese buyers following COVID-19 lockdowns. The report also highlighted a significant downturn in speculative art transactions, particularly in the digital art sector, where NFT sales declined by 51% from their peak in 2021.

The UBS Global Wealth Management chief economist, Paul Donovan, mentioned that the art market is still grappling with the effects of high interest rates and inflation, which are impacting overall sales dynamics.