Ultra-high-net-worth art collectors are pulling back, according to a new report conducted during the summer by Art Basel and UBS.
Of roughly 2,800 collectors surveyed, those who commonly buy artworks priced at $1 million or more fell from 12% in 2021 to 4% in 2022, a nearly 67% decline. The median expenditure on art and antiques actually rose 19% from 2021 to 2022, to $65,000 total, and the median level for the first half of 2023—also $65,000—could still point to further growth. “It indicates that the high end is there, but it’s thinning out,” says Clare McAndrew, who founded the research and consulting firm Arts Economics and prepared the report.“ In 2021, people were back and spending with a vengeance, and budgets were out the window,” she continues. “We’ve seen that decline.”
Spending in the art tier exceeding $1 million bounced back in the first part of 2023, to 9%, but the report noted that “even with these increases, levels were below those of 2021 and previous years.” This tracks with the overall high-end art market, where top-tier contemporary art sales are down substantially, both at auction and in dealers’ reported sales, even as collectors line up in droves for major art events.
“Collectors continue to be enthusiastic about art and collecting, more broadly,” says Paul Donovan, chief economist of UBS Global Wealth Management. “We have seen an ongoing willingness to purchase art, to engage in the art market, attend art fairs and so on, but there does seem to have been something of a shift,” he continues. “People are researching a bit more in depth; I wouldn’t say they’re more cautious, but they’re more considered in their purchases.”
The report was conducted in July and August, McAndrew says. As a result, many
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