UBS says there has been a rise in the art market among millennials
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Many wealthy investors have enviable art collections and it seems the younger generation has a keen eye for what may be a smart investment.
A report from UBS and Art Basel reveals that the art market saw a 6% increase in 2018 from a year earlier with sales worth a total $67.4 billion. It brings the market to its second highest level in 10 years, with values advancing 9% over the decade from 2008 to 2018.
And the report highlights that, driven by wealthy young Asians, the art market is attracting millennials, although a previous UBS Investor Watch report showed most art buyers were over 50.
“New research on global HNW collectors showed that the millennial generation were considerably more active buyers in all sectors of the art market than other generations and accounted for about half of those collectors regularly spending at the level of $1 million or higher,” said Clare McAndrew, founder of Arts Economics.
Online sales increase
Buying art does not necessarily require visits to art fairs or auctions, although these remain central parts of the market.
But online sales, 9% of the global market, reached an estimated new high of $6 billion in 2018, up 11% year-on-year.
The US retained its position as the largest market worldwide, accounting for 44% of sales by value. Sales in the US reached $29.9 billion, the highest recorded level to date.
"The art market is a fascinating reflection of economic developments and trends in wealth creation,” said Mark Haefele, Chief Investment Officer, UBS Global Wealth Management. “Most notable is the growth of billionaire and millennial spending power, particularly in Asian markets. As ever, passion remains the market’s lifeblood and drives the best collectors who value quality pieces that provide pleasure and cultural enrichment."
What are art collectors buying? In 2018, sales of Modern art totalled $4.3 billion – up 19% from 2017.
— UBS Art (@UBSglobalart) March 10, 2019
Download The @ArtBasel and @UBS Global Art Market Report now for a clearer insight into the #ArtMarket. https://t.co/Yt3MtkUwop#ShareUBS #UBSart pic.twitter.com/9K0KkwsJpH
