Art Investment in India
Understanding art as Investment!
There are several factors to consider when investing in Indian art. Following are some of the pointers
- Artist reputation: The reputation of the artist can have a significant impact on the value of a piece of art. Investing in artworks by well-established and reputable artists can help ensure that the value of the piece will hold or appreciate over time
- Rarity: Rarity can be a major factor in determining the value of a piece of art. Investing in pieces that are unique or one-of-a-kind can help ensure that the artwork will hold its value over time.
- Condition: The condition of a piece of art is important to consider when investing. Artworks in excellent condition will generally be worth more than those that are in poor condition.
- Authenticity: It is important to verify the authenticity of a piece of art before investing. Investing in artworks that are authentic and have proper documentation can help ensure that the piece will hold its value over time.
- Market trends: Researching the current trends in the art market can help you understand what types of art are currently in demand, which can help inform your investment decisions.
- Research: Researching the artist, the artwork, and the art market in general is key to making a wise investment.
- Professional advice: It is important to seek professional advice from experts in the field of art, such as art historians, curators, or art dealers, in order to make informed investment decisions.
- Diversification: Diversifying your investment portfolio by investing in different types of art, artists, and mediums can help to mitigate risk and increase the chances of a successful investment.
According to a report by ArtTactic, the Indian art market has grown at a compound annual growth rate (CAGR) of around 12% over the past decade. The report estimates that the market size was around $1.2 billion in 2019. The report also highlighted that the Indian art market is relatively underdeveloped compared to other major art markets such as London and New York, which means there is a lot of room for growth and potential for appreciation in value.
The rising affluence of India's middle class is also driving demand for art, which is further fueling the growth of the market. This is supported by a report by the Indian Ministry of Tourism, which states that the number of domestic and foreign tourists visiting art galleries and museums in India has been increasing steadily over the past few years.
Another report by the Indian Ministry of Culture states that the art market in India is expected to grow at a CAGR of around 12.5% between 2020 and 2025. The report also states that the Indian art market is expected to reach a market size of around $2 billion by 2025.
It's worth mentioning that Indian art is still considered a niche market, hence the prices of Indian art are relatively low compared to the western art, which makes it a good opportunity for investment. Overall, art investment in India is a good opportunity for long-term investment. The Indian art market is growing and there is a huge potential for appreciation in value over time.
Please note : It's important to note that, investing in art is not without risk and it's important to do your due diligence before making any investment decisions.
- ArtTactic, "India Art Market Report" (2019)
- Indian Ministry of Tourism, "Domestic and Foreign Tourists Visiting Art Galleries and Museums in India" (2019)
- Indian Ministry of Culture, "Art Market in India - Industry Outlook and Forecast 2020-2025" (2020)