In 1904, André Level, a Parisian businessman and art collector, along with 11 of his friends, made a bold move: they purchased 145 works from 60 artists, intending to sell them in 10 years. While some of these artists are now considered among the greatest, at the time, the goal was to invest in emerging talent, hoping that their works would gain significant value. These include the likes of Raoul Dufy, Paul Gauguin, Henri Matisse, Picasso, Redon and Vincent Van Gogh.
In 1914, just before the First World War, the collection was auctioned at Hôtel Drouot in Paris, that generated a circulation of 116,545 French francs as per Forbes, which reportedly was exceptional for that time.
Emerging Art as an Investment: The Origins of Art as a Financial Asset
A few decades later, another pivotal shift occurred when British Railways began allocating 3% of its assets to the art market—a space previously dominated by the wealthy, where art was primarily seen as decorative or as part of a legacy to be passed down. Data from art investment companies now shows that allocating 15 to 25% of a portfolio to contemporary art has historically yielded strong returns, often with comparatively lower risk.
But in India, a question arises: has this mindset truly taken hold in how people view their portfolios? Are Indian consumers exploring the primary art market—the essential first step in building a collection that could eventually fuel a secondary art market in India? “A lot more young people—say, 35 to 45—are now starting to appreciate art. They’re beginning to understand and enjoy visiting exhibits, especially at newer galleries,” says Ayesha Parikh, the founder and owner of a contemporary gallery based in Bandra called Art and Charlie. She added, “These buyers are more than happy to look for statement pieces for their homes—perhaps two or three larger pieces and some smaller ones. Once they start, there’s often a shift, and art becomes a regular part of their lives. We even have a few collectors who’ve bought from us multiple times already. It’s clear that the younger generation prefers a lifestyle where they can enjoy beautiful surroundings rather than compromising, which is a shift from the older generation’s ‘save and sacrifice’ approach.”
India’s Growing Art Market: Young Collectors and Intergenerational Wealth
In FY23, the Indian art market recorded a turnover of INR 1,216 crore ($144.3 million) from 3,833 works sold. According to the Grant Thornton Bharat and Indian Art Investor report, this marks a 9% increase in turnover and a 6% rise in the number of works sold compared to the previous year.
While people in India are increasingly spending on art at exhibitions, the Indian art market is still developing compared to the West, where companies like Artelier support not only a passion for art but also the vision of investing wisely. Meanwhile, organisations like Masterworks approach art as a financial asset, seeing it as a stock with strong appreciation potential. According to Ayesha, “If anything, collectors might buy one or two large works a year and still pick up smaller pieces as well. They may invest in a five- to ten-lakh piece once a year but also buy a few works in the one- or two-lakh range.”
Ayesha also emphasises the long-term potential of art investment, saying, “The biggest thing people often overlook with art is that it’s one of the best tools for intergenerational wealth creation. Over time, unlike stocks or mutual funds, where companies may not last even a century, art retains and grows in value. This is why people with significant wealth who understand investments start thinking about intergenerational wealth creation—it’s one of the key ways to ensure long-term value.”
For a long time, art has been seen as a luxurious asset in designing spaces, adding a unique personality to each space. Supriya Menon Meneghetti, an Auroville-based ceramic artist and curator, shared her experience: “For my curations, paintings on canvas are in high demand, and while ceramic art is functional, it’s often a third choice following sculptures. In India, paintings still hold the highest monetary value, followed by sculpture and ceramics. A painting on canvas by a prominent artist might fetch INR 30 lakh, while a top-tier ceramic piece could sell for around six lakh rupees,” she explained, noting the trends in art consumption at her exhibits. “Many high-end business people buy art for their homes or cultural centres they own. There’s an increasing interest in having art as part of their spaces,” she added.
When asked whether people approach her as a curator with a focus on an artist’s investment value, Supriya emphasises that her focus remains solely on curating the best art. “I’ve observed one of India’s top collectors in ceramics who doesn’t even look at the artist’s name on paper; he simply appreciates the work itself,” she explains. “I think it’s important for people to know more—to go beyond just the name. Sometimes, I see collectors simply following familiar names without truly engaging with new or lesser-known artists. While it’s a personal choice, I believe collectors should broaden their horizons, exploring beyond the same names to discover the diversity and depth in art—which, if preserved well, will yield value over time,” she adds.
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