As much as one would like to believe that art is bought from the heart, a majority of buyers, over 70 per cent, see it as ‘passion with an investment value’. According to a survey published in The 2016 Art & Finance Report (by Deloitte Luxembourg and ArtTactic), there has been an increase in art collectors’ concerns about the potential return on investment when buying art.
While 47 per cent cited it as an important factor in 2014; the number increased to 64 per cent this year. In the West, there are companies like AXA Art which are dedicated to protect your buy, and banks such as Privatebank Berlin that provide loans solely based on your art collection. More people now want art and other collectibles to be included in their wealth record, says the 160-page report.
In India, art as a form of investment is still in a nascent stage, says Sharan Apparao, founder of Apparao Art Galleries. Investing in art, in contrast to the colours that make up a canvas, is a dark alley that few tread. Unfortunately, it is also true that if one plans to plunge into this game, they should have a heavy wallet, and patience.
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“The entry price into investing in good art has increased from Rs.20,000 a decade ago to Rs. 5 lakh now. If you invest around that much, you would probably get Rs. 30 to 40 lakh in 20 years,” says Ashvin Rajagopalan, who started Ashvita Fine Art, an art advisory, in 2012. “I know a client who invested two crore rupees in an artwork, and now, five years later, it is worth Rs. 15 crore. No real estate investment can do that for you,” he adds.
“Despite the global art market slowing down, the online market has grown incredibly. The Hiscox Report showed the online market growing 24 per cent to $3.27 billion in 2015,” says Jonas Almgren, CEO of London-based online art gallery, ArtFinder. “People feel that buying art is difficult and expensive. On Artfinder, prices start at under £50 and we offer a global two week money-back guarantee, so you don't even have to make your mind up straight away,” he says.
Today, there are more platforms, both online and physical, that are focussing on providing art that’s ‘affordable’. In Hyderabad, art galleries like Daira, Iconart and Kalakriti have special promotions and events for affordable art annually.
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More people now want art and other collectibles to be included in their wealth record