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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
Economic Times
26-04-2025
- Business
- Economic Times
Shape shifters: Sculptures take center stage in the art world
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel What's an estimate in the art world? Turns out it's just a polite per the Indian Art Investor 2024-25 Art Market Report, the sale of Indian Modern and Contemporary art at auctions globally clocked in at Rs 1,016 while paintings are breaking records, there's one segment that's quietly on carving out a space of its own — sculptures. 'Sculpture has been a somewhat neglected medium that is now beginning to get its due from collectors,' says Ashish Anand of art gallery 2022, experts say that there has been a noticeable increase in both interest and sales volume. Auction house results reflect a clear upward shift as well. 'There has been a 20–30% rise in the number of sculptures offered in auctions since 2017,' shares Manoj Mansukhani, CMO, AstaGuru Auction House.'Sculptures are now more frequently crossing their high estimates, indicating that buyers are not only showing more interest, but are also willing to invest significantly.' Rahul Khanna of Palette Art Gallery adds that over the past few years, they have seen 'a 30– 40% rise in the average selling price of sculptures'.An entrepreneur and art collector who recently picked up two Himmat Shah creations says, 'Shah was an artist of tremendous depth and one of India's pioneering sculptors with stunning creations. Buying his works was an easy decision, including from an investment perspective, as there is great relative value at his current prices and financial upside in the near future.'Some sculptures tip the scales at tonnes, making them awe-inspiring but not exactly easy to live with.'Shipping and handling are definitely more complex with sculptures. But once someone connects with the piece, those challenges become secondary,' explains fashion designer and artist Jenjum Gadi.'For collectors concerned about weight or space, there are several alternatives. Tabletop sculptures are ideal for shelves and consoles, while wall-mounted relief sculptures combine the spatial depth of sculpture with the convenience of wall art. Many contemporary artists now create modular or sectional works that can be assembled on site,' says AstaGuru's are working with fibreglass, resin, paper pulp and mixed media materials that capture the visual gravitas of stone or metal, but without the accompanying logistical challenges. This allows for more fluid forms and contemporary exponential increase in wealth in India helps. Damian Vesey, director, international specialist, South Asian Modern + Contemporary Art at Christie's, says that the market is clearly being led by Indian collectors — including the diaspora. 'We're also seeing that more people are comfortable living with large sculptures, even in urban homes,' he says. International exposure through art fairs, biennales and museum retrospectives — like Mrinalini Mukherjee's exhibition at the Met Breuer — has raised awareness and appreciation for Indian sculptors. Social media has also amplified this trend. Artist Narayan Biswas believes that the pandemic has had a role. 'The stillness of lockdown allowed many artists to return to traditional, tactile mediums — embracing the slow, grounding nature of sculpture.'With modern architecture leaning into open plans, vast glass panels and minimal partitions, traditional wall art isn't the only option, there are more adaptable forms of expression — sculptures included.> Palette Art Gallery's Rahul Khanna and Rohit Gandhi share, 'We've seen a growing desire among collectors, architects and designers to incorporate sculptural works as focal points, be it a bold piece in a double-height living room, a quiet installation in an atrium, or an outdoor form nestled in a landscaped garden.'> 'They offer 360-degree visibility, interact with light and space dynamically,' says AstaGuru's Mansukhani.> Vesey of Christie's shares that interior designers now play a big role in the crossover between art and design — they're also becoming significant buyers in the art young, the old, the new, the bold. While established collectors make up a fair share of the sculpture market, young collectors — people in their 30s, 40s, and some even in their 20s — are also poring catalogues. Artist Paresh Maity says, 'Now, the younger generation is at the forefront, as they have understood the value of collecting art, especially sculptures.'
Time of India
26-04-2025
- Business
- Time of India
Shape shifters: Sculptures take center stage in the art world
What's an estimate in the art world? Turns out it's just a polite suggestion. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" As per the Indian Art Investor 2024-25 Art Market Report, the sale of Indian Modern and Contemporary art at auctions globally clocked in at Rs 1,016 crore. But, while paintings are breaking records, there's one segment that's quietly on carving out a space of its own — sculptures. 'Sculpture has been a somewhat neglected medium that is now beginning to get its due from collectors,' says Ashish Anand of art gallery DAG. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses In Ahmedabad Container House Search Now Undo Since 2022, experts say that there has been a noticeable increase in both interest and sales volume. Auction house results reflect a clear upward shift as well. 'There has been a 20–30% rise in the number of sculptures offered in auctions since 2017,' shares Manoj Mansukhani, CMO, AstaGuru Auction House. 'Sculptures are now more frequently crossing their high estimates, indicating that buyers are not only showing more interest, but are also willing to invest significantly.' Rahul Khanna of Palette Art Gallery adds that over the past few years, they have seen 'a 30– 40% rise in the average selling price of sculptures'. Live Events An entrepreneur and art collector who recently picked up two Himmat Shah creations says, 'Shah was an artist of tremendous depth and one of India's pioneering sculptors with stunning creations. Buying his works was an easy decision, including from an investment perspective, as there is great relative value at his current prices and financial upside in the near future.' Rock and a Hard Place Some sculptures tip the scales at tonnes, making them awe-inspiring but not exactly easy to live with. 'Shipping and handling are definitely more complex with sculptures. But once someone connects with the piece, those challenges become secondary,' explains fashion designer and artist Jenjum Gadi. 'For collectors concerned about weight or space, there are several alternatives. Tabletop sculptures are ideal for shelves and consoles, while wall-mounted relief sculptures combine the spatial depth of sculpture with the convenience of wall art. Many contemporary artists now create modular or sectional works that can be assembled on site,' says AstaGuru's Mansukhani. Sculptors are working with fibreglass, resin, paper pulp and mixed media materials that capture the visual gravitas of stone or metal, but without the accompanying logistical challenges. This allows for more fluid forms and contemporary finishes. Chiselled and in Vogue The exponential increase in wealth in India helps. Damian Vesey, director, international specialist, South Asian Modern + Contemporary Art at Christie's, says that the market is clearly being led by Indian collectors — including the diaspora. 'We're also seeing that more people are comfortable living with large sculptures, even in urban homes,' he says. International exposure through art fairs, biennales and museum retrospectives — like Mrinalini Mukherjee's exhibition at the Met Breuer — has raised awareness and appreciation for Indian sculptors. Social media has also amplified this trend. Artist Narayan Biswas believes that the pandemic has had a role. 'The stillness of lockdown allowed many artists to return to traditional, tactile mediums — embracing the slow, grounding nature of sculpture.' Life of the Living Room With modern architecture leaning into open plans, vast glass panels and minimal partitions, traditional wall art isn't the only option, there are more adaptable forms of expression — sculptures included. > Palette Art Gallery's Rahul Khanna and Rohit Gandhi share, 'We've seen a growing desire among collectors, architects and designers to incorporate sculptural works as focal points, be it a bold piece in a double-height living room, a quiet installation in an atrium, or an outdoor form nestled in a landscaped garden.' > 'They offer 360-degree visibility, interact with light and space dynamically,' says AstaGuru's Mansukhani. > Vesey of Christie's shares that interior designers now play a big role in the crossover between art and design — they're also becoming significant buyers in the art market. Who's buying? The young, the old, the new, the bold. While established collectors make up a fair share of the sculpture market, young collectors — people in their 30s, 40s, and some even in their 20s — are also poring catalogues. Artist Paresh Maity says, 'Now, the younger generation is at the forefront, as they have understood the value of collecting art, especially sculptures.'
