Summer Shifts: Navigating Challenges and Trends in the 2024 Art Market

Summertime traditionally leads to a slowdown in gallery activity, with many hosting fewer exhibitions or closing entirely for August. Meanwhile, auction houses leverage this period by staging mid-season auctions, attracting art enthusiasts and those attending major events like the Venice Biennale. September then sees a flurry of gallery openings, auctions and new museum exhibitions, often shaping market trends for the rest of the year. In this article, we highlight the current state of the art market midway through 2024

Q2 Results in the Art Market

We’re halfway through 2024, and fine art sales at Christie’s, Phillips and Sotheby’s totalled $2.66 billion, down 25% from last year and 48% from the first half of 2022. Sotheby’s summer auctions in London notably underperformed, showing reduced buyer interest and fewer auction guarantees. Christie’s also reported lower revenues, with actual results falling short of expectations amid broader market uncertainties.

Current Market Realities

What is the situation for artists, collectors and the art market as a whole now? The art world certainly faces challenges, as evidenced in recent staff reductions at major auction houses and gallery layoffs. These moves indicate struggles to meet sales targets and attract buyers. Financial specifics are unclear, but these layoffs signal underlying economic pressures.

Hold, Hold, Hold

This year has been marked by a notable absence of high-profile collections entering the market, with wealthy collectors hesitating to sell. Sellers who are willing to compromise are conceding to current market prices. In a weak market, sellers might prefer to take the work back and wait for a better time to sell publicly or privately.

Looking for New Horizons

The Abu Dhabi sovereign wealth fund ADQ has invested $1 billion in Sotheby’s, aiming to expand its presence in the Middle East. This aligns with the UAE’s strategy to develop its art scene and diversify its economy with the opening of Louvre Abu Dhabi in 2017, the Guggenheim Abu Dhabi in 2026 and many other museums and cultural initiatives. Meanwhile, Sotheby’s parent company, Bidfair, is facing significant financial strain, with $3.5 billion in long-term debt as of late 2023. Without ADQ’s investment, Bidfair might have taken significant steps such as asset sales, restructuring or refinancing to manage its debt load.

Events Forecast to Impact Investment

Banksy

Banksy has unveiled nine (at date of writing) new public artworks across London in nine days, known as the ‘London Zoo’ series by fans, transforming urban landscapes into playful visual puns, such as monkeys swinging from an overpass and a jungle cat stalking through a leafy area. While not all the pieces survived the week, a spokesperson from Pest Control Office emphasised that the works were intended to bring unexpected joy and showcase human creativity. These installations precede Banksy’s upcoming solo auction at Sotheby’s in September, marking his 10th solo auction with the renowned auction house since 2019, a testament to his status as a leading global artist.

David Hockney

David Hockney is undertaking the monumental task of creating a catalogue raisonné, with the first volume focused on his paintings set for release in 2026. This project will document over 35,000 works and be available digitally for ongoing updates, spanning 15 to 20 years. Simultaneously, Hockney is solidifying his auction presence. In May 2023, Phillips announced an annual sale dedicated to his work, building on the success of his 2022 sale. The first two sales saw remarkable demand, achieving a 100% sell-through rate, with 78% of the 2022 lots and 55% of the 2023 lots exceeding their high estimates. This combination of a comprehensive catalogue raisonné and a regular auction series positions Hockney’s market for long-term stability and success.

Yayoi Kusama

Yayoi Kusama has unveiled two monumental public art installations in London. Infinite Accumulation, her largest public sculpture to date, now stands permanently at Liverpool Street station, while a 6-metre-tall bronze pumpkin, her tallest yet, has been installed by the Round Pond in Hyde Park’s Kensington Gardens until November 2024. Both works, engaging dynamically with their environments and offering unique visual experiences, underscore Kusama’s global influence.

KAWS

Not a Hotel , a timeshare service selling shares of holiday properties designed by renowned architects and designers, has opened a new property overlooking Tokyo Bay featuring works by KAWS , including a large sculpture overlooking the bay. The property was designed by Nigo, with sales beginning in autumn 2024.

Whether you want to start your art journey, or you're a seasoned collector, the Maddox Team are on hand to help you with whatever your art needs are. Please explore our New Arrivals here or explore our Current Exhibitions page here.

Created by the Maddox Research Team on the 5th September 2024.