Art Basel & Ubs Art Market Report 2024

At the outset of 2024, many regions are confronted with challenges such as high inflation, economic fluctuations, and conflicts and divisions arising from wars, casting a shadow over activities in the art market. However, despite these challenges, art fairs, auctions, and exhibition calendars are gradually returning to pre-pandemic norms, showcasing the resilience of the art market.

Despite the long-standing impact of COVID-19 restrictions, the Chinese market has rebounded against the overall trend, surpassing the UK to become the second-largest market globally. With post-lockdown buyers rushing to purchase backlogged auction items and major fairs and exhibitions in Hong Kong returning to full-scale operations, market activity surged. China's sales grew by an astonishing 9% over the year, reaching an estimated $122 billion.

The eighth edition of the "The Art Basel & Ubs Art Market Report 2024 By Arts Economics," authored by Dr. Clare McAndrew, founder of Arts Economics, in collaboration with UBS, sheds light on these complex developments, revealing decisive trends and emerging tendencies in the global art business. A series of systematic analyses and data reports offer a more intuitive understanding of recent changes and developments in the market.

In 2023, the art market experienced a contraction, with sales declining by 4% to reach $650 billion. This decline affected both dealers and auction houses, as sellers and buyers adjusted to the constantly changing market conditions. Despite the year-on-year decrease, the market remained above pre-pandemic levels, and in the last quarter of 2023, the market demonstrated some resilience.

It is noteworthy that despite the overall decrease in sales value, sales volume increased, primarily at lower price points. Meanwhile, average sales for dealers with turnover below $500,000 increased by 11%. In contrast to recent trends, the high-end market saw a contraction in 2023, with average values for the largest dealers with turnover exceeding $10 million declining by 7%. These trends reflect a new emphasis on value and quality in the market.

Online sales also experienced strong growth in 2023, increasing by 7% and now accounting for 18% of the total market value. This indicates the ongoing maturity of the online sector in the art business, with dealers' own websites becoming the preferred channels for art collectors to make purchases.

According to a survey conducted by Arts Economics and UBS last year among high-net-worth collectors, the majority of them hold an optimistic view of the market. Over one-third of dealers and auction houses anticipate an increase in sales, while only 16% of dealers predict a decline. The strength of financial markets, expected declines in interest rates, and easing inflation offer hope. A significant number of new, young, and ambitious collectors are entering the market, especially in China, where events like art fairs provide business channels for dealers and gallery owners.

This report provides detailed insights into the trends and perspectives of the art market as observed at Art Basel. As professional art finance investors and seasoned collectors, members of the OGP collectors hope that this content will help you gain a better understanding of the current state of the art market and provide you with prudent and secure collecting guidance.