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Economic Times
2 days ago
- Business
- Economic Times
Is art a good investment? Here are its advantages and hidden costs
Getty Images Many leading business tycoons trace their corporate galleries back to the personal art pursuits of founders and their families. The art world turned several heads in the first quarter of 2025, especially after a prominent auction at New York turned into a record-breaking affair. Nine artists broke their personal auction records, with the sale raking in an impressive $16.8 million. In the headlines was the $4.68 million sale of Indian artist Jagdish Swaminathan's triptych, Homage to Solzhenitsyn (1973). Not far behind were standout works like Jehangir Sabavala's The Journey of the Magi (1963), F.N. Souza's Oriental City (1958) and Madhvi Parekh's Flower Seller (1975), all of which drew significant interest from collectors across the globe. Art is valuable and an asset worth acquiring, but these all-time high sales hold a story beyond numbers. For India's sharply rising pool of ultra high net-worth individuals (UHNIs) and high net-worth individuals (HNIs), art is no longer just about passion or prestige—it's about potential. Once collected as status symbols, master artworks are now being seen as strategic financial assets, offering everything from portfolio diversification and appreciation to inflation protection. Blue-chip art for diversification According to the 'State of the Indian Art Market Report FY23' by Grant Thornton Bharat and Indian Art Investor, the Indian art market topped $144 million in 2023, with the number of works sold and turnover in 2022-23 rising 6% and 9%, respectively, over 2021-22, cementing art as a sunrise asset points to a fundamental shift in the way art is no longer perceived as an exclusive indulgence, but as a calculated asset that balances cultural value and capital appreciation. What sets art apart is that its pricing is driven not by economic volatility, but by the artist's merit, provenance, and rarity of the work, making it more stable and equities, which have ups and downs, art is often seen as a tangible, finite asset. During periods of inflation, the demand for such collectibles typically increases, helping investors with a cushion of sorts, making art not just a luxury indulgence but a strategic financial anchor. Among the elite, few assets are as magnetic as blue-chip art. Especially, works from Indian and global masters. The art of business It's not just savvy collectors, but businesses too that are latching on to this trend, weaving art into investment strategies and workspaces alike. In India, corporate art collection is largely shaped by the personal passions of promoters and their existing private leading business tycoons trace their corporate galleries back to the personal art pursuits of founders and their families. Over time, these have grown into institutionalised corporate assets with growing market value. Increasingly, architects are also commissioning site-specific works in their corporate projects. Big names like the RPG Group, Piramal, Bajaj and Kiran Nadar have recognised not only art's cultural resonance, but are fetching multi-crore prices and signalling confidence in art's investment potential. Role of galleries & patrons The Hurun Art List 2024 suggests that the Indian art market is witnessing a significant growth, with total sales by the top 50 Indian artists reaching an impressive $36.2 million in 2024, a 19% rise over the year institutions like Delhi's Dhoomimal Gallery continue to increase the presence of art. Galleries like Nature Morte and Vadehra Art Gallery add to the evolving art landscape representing some of the most accomplished artists of today, while also catering to emerging talent. In Mumbai, The Art House at the Nita Mukesh Ambani Cultural Centre, DAG at the Taj Mahal Palace, Chatterjee & Lal are some of the most visited galleries for buying art from emerging and established private art galleries, even government-funded ones—National Gallery of Modern Art and Lalit Kala Akademi in Delhi, and Nehru Centre Art Gallery in Mumbai— capture the iconic brushstrokes of old-school legends and host contemporary the coming years, patrons and collectors are set to expand with new projects, like Kiran Nadar in New Delhi. Featuring 'Collection Galleries', the new Kiran Nadar Museum of Art space will be dedicated to presenting the collection to the public, democratising art and art experience. Industrialist and collector Abhishek Poddar's Museum of Art and Photography in Bengaluru, too, is shaking up the museum scene by making art feel inclusive and within reach. From traditional collections with cutting-edge digital experiences, AI-driven guides and interactive exhibits art is becoming accessible and is slowly building a community around it. The flipside of canvas Selling art can be challenging, even if you own masters. Patience is key when you want to trade art, irrespective of the value of the piece. Selling masterpieces often sees a long waiting period, whether through a gallery, private sale, or an auction. Deals may take months, if not years, to close. If markets are slow, you may simply have to keep it up on your wall. Unlike stock portfolios, art also lacks a broad secondary market. Even fractional platforms offer limited exit options, making patience a vital part of the art is taxed like any other asset class. In India, if an artwork is sold after two years, it's treated as a long-term capital asset and taxed at 12.5%. If sold before 24 months, it's considered a short-term capital asset and taxed at slab rate. Effective 22 April, a 1% tax collected at source applies on the sale of luxury goods, including paintings, sculptures and antiques, when the sale consideration exceeds `10 lakh. The seller is responsible for collecting this tax. Paintings, sculptures and antiques attract 12% GST under specified HSN codes. Imports carry a 10% customs duty, except for artworks created by Indian artists and sculptors, and imported into India. Export and VAT-related obligations add to the compliance landscape for collectors and investors. While the tribe of art lovers and owners is rising in tandem with India's growing rich and wealthy, the market is still shallow, compared to several other developed countries, including neighbours like China. It's important for buyers to be aware of a limited secondary market and resale options. In essence, while art offers aesthetic and long-term financial value, it demands deep pockets, expert advice and, above all, patience. Ownership & maintenance costs Beyond the purchase price, maintaining a high-value piece comes with its own costs: specialised insurance, climate-controlled storage, condition reporting, even logistics, if the artwork is travelling for exhibitions. These costs often go unnoticed until after the purchase, turning what looked like a great deal into a long-term financial innovation reshaping the art world and access widening like never before, investing in art is becoming a smart, strategic avenue for those looking to diversify beyond traditional asset classes. For India's rising base of HNIs and UHNIs, art is no longer just something you collect, it's something you calculate. When done right, it's an asset that delivers not just beauty, but legacy. The Author is MANAGING DIRECTOR, INDIA SOTHEBY'S INTERNATIONAL REALTY (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
Time of India
2 days ago
- Business
- Time of India
Is art a good investment? Here are its advantages and hidden costs
Blue-chip art for diversification Academy Empower your mind, elevate your skills The art of business Role of galleries & patrons The flipside of canvas Ownership & maintenance costs The art world turned several heads in the first quarter of 2025, especially after a prominent auction at New York turned into a record-breaking affair. Nine artists broke their personal auction records, with the sale raking in an impressive $16.8 million. In the headlines was the $4.68 million sale of Indian artist Jagdish Swaminathan's triptych, Homage to Solzhenitsyn (1973). Not far behind were standout works like Jehangir Sabavala's The Journey of the Magi (1963), F.N. Souza's Oriental City (1958) and Madhvi Parekh's Flower Seller (1975), all of which drew significant interest from collectors across the is valuable and an asset worth acquiring, but these all-time high sales hold a story beyond numbers. For India's sharply rising pool of ultra high net-worth individuals (UHNIs) and high net-worth individuals (HNIs), art is no longer just about passion or prestige—it's about potential. Once collected as status symbols, master artworks are now being seen as strategic financial assets, offering everything from portfolio diversification and appreciation to inflation to the 'State of the Indian Art Market Report FY23' by Grant Thornton Bharat and Indian Art Investor, the Indian art market topped $144 million in 2023, with the number of works sold and turnover in 2022-23 rising 6% and 9%, respectively, over 2021-22, cementing art as a sunrise asset points to a fundamental shift in the way art is no longer perceived as an exclusive indulgence, but as a calculated asset that balances cultural value and capital appreciation. What sets art apart is that its pricing is driven not by economic volatility, but by the artist's merit, provenance, and rarity of the work, making it more stable and equities, which have ups and downs, art is often seen as a tangible, finite asset. During periods of inflation, the demand for such collectibles typically increases, helping investors with a cushion of sorts, making art not just a luxury indulgence but a strategic financial anchor. Among the elite, few assets are as magnetic as blue-chip art. Especially, works from Indian and global not just savvy collectors, but businesses too that are latching on to this trend, weaving art into investment strategies and workspaces alike. In India, corporate art collection is largely shaped by the personal passions of promoters and their existing private leading business tycoons trace their corporate galleries back to the personal art pursuits of founders and their families. Over time, these have grown into institutionalised corporate assets with growing market value. Increasingly, architects are also commissioning site-specific works in their corporate projects. Big names like the RPG Group, Piramal, Bajaj and Kiran Nadar have recognised not only art's cultural resonance, but are fetching multi-crore prices and signalling confidence in art's investment Hurun Art List 2024 suggests that the Indian art market is witnessing a significant growth, with total sales by the top 50 Indian artists reaching an impressive $36.2 million in 2024, a 19% rise over the year institutions like Delhi's Dhoomimal Gallery continue to increase the presence of art. Galleries like Nature Morte and Vadehra Art Gallery add to the evolving art landscape representing some of the most accomplished artists of today, while also catering to emerging talent. In Mumbai, The Art House at the Nita Mukesh Ambani Cultural Centre, DAG at the Taj Mahal Palace, Chatterjee & Lal are some of the most visited galleries for buying art from emerging and established private art galleries, even government-funded ones—National Gallery of Modern Art and Lalit Kala Akademi in Delhi, and Nehru Centre Art Gallery in Mumbai— capture the iconic brushstrokes of old-school legends and host contemporary the coming years, patrons and collectors are set to expand with new projects, like Kiran Nadar in New Delhi. Featuring 'Collection Galleries', the new Kiran Nadar Museum of Art space will be dedicated to presenting the collection to the public, democratising art and art experience. Industrialist and collector Abhishek Poddar's Museum of Art and Photography in Bengaluru, too, is shaking up the museum scene by making art feel inclusive and within reach. From traditional collections with cutting-edge digital experiences, AI-driven guides and interactive exhibits art is becoming accessible and is slowly building a community around art can be challenging, even if you own masters. Patience is key when you want to trade art, irrespective of the value of the piece. Selling masterpieces often sees a long waiting period, whether through a gallery, private sale, or an auction. Deals may take months, if not years, to close. If markets are slow, you may simply have to keep it up on your wall. Unlike stock portfolios, art also lacks a broad secondary market. Even fractional platforms offer limited exit options, making patience a vital part of the art is taxed like any other asset class. In India, if an artwork is sold after two years, it's treated as a long-term capital asset and taxed at 12.5%. If sold before 24 months, it's considered a short-term capital asset and taxed at slab rate. Effective 22 April, a 1% tax collected at source applies on the sale of luxury goods, including paintings, sculptures and antiques, when the sale consideration exceeds `10 lakh. The seller is responsible for collecting this tax. Paintings, sculptures and antiques attract 12% GST under specified HSN codes. Imports carry a 10% customs duty, except for artworks created by Indian artists and sculptors, and imported into India. Export and VAT-related obligations add to the compliance landscape for collectors and the tribe of art lovers and owners is rising in tandem with India's growing rich and wealthy , the market is still shallow, compared to several other developed countries, including neighbours like China. It's important for buyers to be aware of a limited secondary market and resale options. In essence, while art offers aesthetic and long-term financial value, it demands deep pockets, expert advice and, above all, the purchase price, maintaining a high-value piece comes with its own costs: specialised insurance, climate-controlled storage, condition reporting, even logistics, if the artwork is travelling for exhibitions. These costs often go unnoticed until after the purchase, turning what looked like a great deal into a long-term financial innovation reshaping the art world and access widening like never before, investing in art is becoming a smart, strategic avenue for those looking to diversify beyond traditional asset classes. For India's rising base of HNIs and UHNIs, art is no longer just something you collect, it's something you calculate. When done right, it's an asset that delivers not just beauty, but Author is MANAGING DIRECTOR, INDIA SOTHEBY'S INTERNATIONAL REALTY
Mint
23-04-2025
- Entertainment
- Mint
Indian art is having its breakout moment. Here's who's driving it
Indian art is having its breakout moment—and a new generation of collectors, curators and market makers is leading the charge. In a matter of weeks, a trio of blockbuster art auctions across New York and Mumbai raked in more than ₹ 220 crore, with modern masters like M.F. Husain and Tyeb Mehta smashing records once reserved for Western icons. The biggest headline came from Christie's in New York, where Husain's monumental Gram Yatra sold for ₹ 118 crore—the highest price ever paid for an Indian artwork. Not far behind, Mehta's Trussed Bull fetched ₹ 61.8 crore at Saffronart's Mumbai sale, nearly nine times its high estimate. At Sotheby's in New York, Jagdish Swaminathan's Homage to Solzhenitsyn crossed ₹ 39 crore. After years of quiet momentum, India's art market has entered a new phase of global relevance—driven not just by wealth, but by strategic repositioning, institutional power, and a swelling wave of collectors who view art not just as culture, but as capital. Also read | How Sotheby's made it to the spotlight in India's art market 'The surge in demand is being driven by the onset of a new crop of collectors, not just the older well-heeled ones but even a younger lot who have equal love for the masters as well as the globally renowned lot of mid-career masters," said Delhi-based independent critic and curator Uma Nair. While Husain, Raza and Mehta remain anchors of the market, contemporary names like Jitish Kallat, Atul Dodiya and Bharti Kher are also drawing attention. Veteran buyers like Kiran Nadar still dominate, but younger, digital-savvy collectors are entering the fray—fuelling record prices and a broader appetite for both modern masters and contemporary stars. While Nadar placed the winning bid for Husain's Gram Yatra , emerging names like Shankh Mitra are stepping into the spotlight too. Mitra was among the final contenders for the historic Husain sale, and reflects what Nair calls an example of 'the desire for accumulating art as an asset." Jaiveer Johal, a logistics business owner in Chennai, began collecting modern and contemporary Indian art about a decade ago, when he was 28. He soon widened his collection—moving swiftly from modern to contemporary to classicals. Now 36, Johal calls his collection 'aesthetically focused." It includes paintings by S.H. Raza and F.N. Souza, as well as sculptures and miniatures from classical traditions, such as Gandhara and Vijayanagara-period pieces. "The most notable is the emergence of young collectors, looking specifically at contemporary art and the average collector is between 40-50 years, the younger collectors have begun to collect as early as 30," AstaGuru's CEO, Tushar Sethi had told Mint in an earlier conversation. Read this | The Met's Indian affair: Iconic New York museum embraces India's contemporary art boom With major galleries and a wave of new collectors driving art events across the country, Nair said, 'Great artworks reflect the market dynamics, and are positioned with a clear sense of how they stand out among the many styles that appeal to today's new generation of collectors." This boom isn't just about deeper pockets. It's being powered by a wider, younger base—many of them digital-first, collecting well beyond traditional names. 'There is a confidence in the market that cannot be denied," said Minal Vazirani, co-founder of auction house Saffronart. 'Since the pandemic, we've seen increasing wealth and interest, and now there's a new segment of younger, digital-native collectors alongside seasoned ones." She added that the Indian art market has doubled since 2020—from ₹ 700 crore to over ₹ 1,400 crore. According to Nair, the art boom mirrors India's economic story. "The Indian economy and its many facets of meteoric momentum in addition to wealth, have all added to the records that have fuelled strong market dynamics," Nair told Mint . Record-breaking sales, she added, 'tell us of the rites of passage in the hands of a group of collectors." The numbers tell the story. March alone brought in ₹ 470 crore in global sales—nearly a fourth of FY25's full-year total, according to Asign Data Sciences. Analysts say this surge, years in the making, is likely to carry well into 2025. And if Saffronart's April auction is any sign, the rally is just getting started. That sale alone topped ₹ 245 crore, setting a new global benchmark for South Asian art with a 100% sell-through rate. Highlights included Amrita Sher-Gil's Still Life with Green Bottles and Apples ( ₹ 24 crore), F.N. Souza's Supper at Emmaus ( ₹ 15.3 crore), and Edwin Lord Weeks' Lake at Oodeypore ( ₹ 12 crore). Seven artists set new global price benchmarks, including Nalini Malani's Nursery Tales at ₹ 3.36 crore—over five times its estimate. AstaGuru and Pundole's also reported strong demand for both marquee names and rarer historical pieces. A 1903 Riddhisiddhi Ganpati —once part of the Fritz Schleicher collection—fetched ₹ 16 crore at Pundole's, doubling its high estimate. Read this | Indian art market is one of the most exciting we've seen in recent years: Christie's CEO Cerutti At AstaGuru, Jehangir Sabavala's In The Ambush Of A Calm sold for ₹ 3.8 crore in February, while a 1980 J. Swaminathan canvas, Bird Tree Mountain , fetched ₹ 2.56 crore—underscoring a growing collector appetite beyond the usual trio of Husain, Mehta and Raza. 'Culture is a logical extension of financial prosperity. The momentum for the Indian art market began during the pandemic and it is continuing," said Dadiba Pundole, whose gallery has watched the build-up since the pandemic. 'By and large, Indians are buying the blue-chip works, and rare or special works have recently come to the market and broken barriers like crossing $10 million, demonstrating that the market is becoming more discerning. But as the prices of some big names go out of hand, buyers are also considering works that are not very expensive," Pundole said. Asign's data backs that up. In FY25, the highest volume of sales came from the sub- ₹ 5 lakh price range, suggesting a widening base. At the same time, the ₹ 5 crore-and-above segment generated 40% of overall turnover, with 244 artworks sold above that level—up 17% from FY24. In the ₹ 5–10 crore bracket alone, 35 works sold, a 34% jump from the year before. And read | Indian art prices are at an all-time high. Is there stagnation or growth ahead? 'What we're seeing at the upper end is that older collectors are still buying, but younger collectors are also entering steadily," added Pundole. 'Current trends suggest this upward cycle will continue. While there may be short-term disruptions from stock or macroeconomic shifts, the long-term trajectory is positive. We expect to see more important works entering the market." With major auctions lined up in Delhi, London and New York, the story of Indian art's ascent is still being written. But one thing is clear: it's no longer waiting in the wings.
