Contemporary Art Market Declines For Fourth Straight Year, as Old Masters and Impressionist Works Rebound: Art Basel UBS Report

Contemporary Art Market Declines For Fourth Straight Year, as Old Masters and Impressionist Works Rebound: Art Basel UBS Report

The contemporary art market has declined for the fourth consecutive year, with auction sales for postwar and contemporary works falling to $4.5 billion in 2025 from a peak of $8.5 billion in 2021. Simultaneously, the market has seen a significant rebound in more established categories, with auction sales of Impressionist and Post-Impressionist works rising 47% and Old Masters climbing 30% last year.

Comment | Latest auctions prove Old Masters are not ‘out of fashion’

Recent Old Master auctions in New York have defied narratives of market decline, totaling over $185 million across Sotheby’s and Christie’s. High-profile sales included a newly discovered Michelangelo drawing for $27.2 million, a Canaletto masterpiece for $30.5 million, and a record-breaking Rembrandt drawing sold for $17.8 million. These results, alongside the Italian state's $14.9 million acquisition of an Antonello da Messina, suggest that historical masterpieces remain premier "civilisational assets" and stable financial havens during periods of economic volatility.

Christie's and Sotheby's end 2025 with increased sales, thanks to luxury goods, trophy lots and private deals

Christie's and Sotheby's both reported increased total projected revenue for 2025, reversing two years of market decline. Sotheby's led with $7bn in global sales (up 17%), boosted by a record $236.3m sale of Klimt's *Portrait of Elisabeth Lederer* and strong luxury sales. Christie's posted $6.2bn overall (up 6%), with private sales accounting for 24% of revenue and Old Masters rising 24% year-on-year. Both houses saw significant growth in the second half of 2025 and continued expansion in luxury categories, though Asian art and Asia Pacific buyer spending declined at Christie's.

The Surreal Economics of the Contemporary-Art Market

A conceptual artwork titled "Comedian" by Maurizio Cattelan, consisting of a banana duct-taped to a wall, sold at auction for over $6 million to billionaire Justin Sun. This sale occurred amid widespread speculation that the contemporary-art market has peaked, with global art sales dropping 12% in 2024. However, a painting by Marlene Dumas defied the trend, fetching $13.6 million and setting a record for a living female artist. The article explores the bewildering economics of the art market, featuring insights from economist Canice Prendergast and journalist Bianca Bosker, who describe a market where prices seem divorced from traditional logic.