Art Market's Shaky Canvas: Global Sales Stumble as Wealthy Buyers Hold Back

According to UBS's Art Market Report, global art sales declined by 4%, reaching approximately $65 billion last year. High inflation and political instability prompted wealthy buyers to purchase less art. China, alone, saw a rise in art transactions, marking a 9% increase to $12.2 billion, now the world's second-largest market.

Global art sales fell by 4% to approximately $65 billion last year, a consequence of wealthier buyers exercising caution, as reported by the Art Market Report from UBS on Thursday.

UBS's wealth management division, catering to art-buying clients without treating art as investments, attributes the cautious purchasing trend to inflation, high interest rates, and political instability, according to Chief Economist Paul Donovan.

While auction sales saw a 7% decline and dealer activities a 3% reduction, China stood out with a 9% increase in art transactions to $12.2 billion, overtaking others as the second-largest market. Speculative transactions involving digital art, such as NFTs, collapsed significantly, and have not bounced back despite easing interest rates and rising cryptocurrencies.

(With inputs from agencies.)