Looking to invest in art for recreation and future investment? We have expert break it down for you.
In India, where artistic traditions stretch back millennia, art collecting is far more than an investment—it’s a journey through history and changing cultural landscapes. From the intricate miniatures of Kishangarh and Kalighat patachitra of Kolkata to avant-garde creations of modern Indian artists like Subodh Gupta and even Jayesh Sachdev, the Indian art market is a tapestry of history, innovation, and burgeoning talent offering a compelling opportunity for collectors and investors alike.
But a true collector’s journey is often a deeply personal one. It needs to be nurtured and cultivated. With time and strategic investments, it will develop into a financially savvy portfolio by securing valuable pieces that reflect not just your taste, but also your heritage. The biggest challenge in art appreciation and investment is the perception that it is only for the wealthy. While this may be true for high-profile art auctions and sales, there are opportunities for individuals with varying budgets to invest in art. It’s possible to start with smaller, less expensive artworks and gradually build a collection. “I started my art collection with a piece worth INR 8,000 from another Delhi gallery. I still love that tiny piece and it still garners the attention of my friends. There is beautiful art at lower prices and art, if chosen wisely and after good research, can appreciate more than ten times,” explains Arjun Butani, Director and Co-founder, of Gallery Pristine Contemporary. He also warns that not all art will appreciate—it depends on the artist’s reputation, the quality of the artwork, and market trends.
For those who want to start investing in art, we asked gallerists and auctioneers to share what they thought were the most important things to keep in mind while investing in art. Here is a ready reckoner:
If an art investment is on your mind, then there are a few more due diligence steps that need to be taken before making that big purchase. These include:
“It’s important to realise that art is an alternate asset and investment class since it comes with a significantly higher risk when compared to traditional investment classes. Also, the more established the artist already is, the safer is the investment. But the market can always fluctuate,” explains Sahil Arora founder and curator of Method. For instance, not all works by SH Raza will yield the same return; pieces from his 1980s Bindu series will yield higher returns than his early 2000s work. Investing in art is also a way of building generational wealth.
“The secondary art market is not too vast and the main players know what has been sold when and cannot be turned around quickly,” adds Singh. Fine art prices tend to move inversely with real interest rates and rise during inflationary periods, making it a good hedge against inflation Investing in art entails investing in a tangible asset while also offering aesthetic enjoyment, with the potential for appreciation in value over time. Another crucial factor to consider is whether any major museum is planning a retrospective of the artist whose work you hold. Such an exhibition should occur before you consider offering your piece on the market.
As a buyer, you will also undergo at least a basic scrutiny, where a gallery will do due diligence of the client internally. These institutions guide the buyer/investor and connect a work of art with a befitting owner and home. This comes about through investing time and effort into getting to know the collector, their wants, needs and tastes, as well as developing a relationship that is built over time.
An art purchase is one is not something to be taken lightly; it demands time, dedication and patience. It starts as a curiosity but once you get the knack of selecting the right pieces, it is both an emotional and financial investment for the ages.