The Indian art market is on track to have its best-performing year on record, based on the first six months of FY23. With sales of USD 75.8 million as of September 30, 2022, according to Indian Art Investor’s Indian art market report
for H1FY23, FY23 may exceed FY22. The first six months of FY23 have exceeded the annual turnover of 34 of the 39 years of previous auction data submitted by IAI
. The study states that a total of 468 artists — or 57 percent of the works sold in FY22 — contributed to this achievement by selling 2,053 works.
“The top of the market continues to break standards and make headlines. Works priced at >1.2 million dollars are responsible for 67 percent of sales, with the top 5 most expensive works alone bringing in 20 percent. the gap widens, the same goes for the lowest level. Works priced
Commenting on the report’s findings, Pallavi BakhruPartner, Private Client Services at Grant Thornton Bharatsaid: “With a staggering $75.8 million generated in the first half of the current fiscal year, people now understand that the Indian art market is a great space for alternative investment portfolios. With a sharp rise in income, there has been an increase in the demand for art, and while art has usually been considered a collector’s item and a luxury item, it has slowly and steadily moved into the category of a capital good, which by definition offers benefits over a long period of time.Although traditional buyers have been a force in the driving the market, there is an influx of new collectors who find art safe and warm to the idea of art as an investment option.”
The top 10 most expensive works sold in H1FY23 were evenly split between Q1 and Q2. These ten units were responsible for 27 percent of the total sales produced in those six months. Seven of these pieces belonged to modernists, and three were pre-modernist pieces. The majority of the works sold and 81 percent of the total revenues in this period belong to modernists. Since oil was the medium most used by modernists, it accounted for 57 percent of total revenue. Since canvas is believed to be the material of choice for oil, it accounted for 75 percent of its revenue. Online auctions have completely revolutionized the market and now make up 86 percent of all transactions.
Overall, H1FY23 has demonstrated the strength of the Indian art auction business, with steady growth and unrealized potential. The market has proudly grown in all the right directions. Modernists have proved wise investments since contemporaries have emerged. In addition to an influx of wealth and a new breed of collectors entering the market, there is a positive attitude. The auction season got off to a strong start in September and the market continues to amaze everyone.
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