The art market experienced a turbulent 2025, beginning with a 12% decline in sales from 2024, following a 3% drop in 2023, as reported by the Art Basel and UBS Global Art Market Report. Major auction houses Christie’s, Sotheby’s, and Phillips saw average sales fall 6% in the first half of the year. However, the market rebounded by autumn, with strong sales at London and Paris art fairs and a 15% year-on-year increase in auction sales at the three main houses by December, according to Pi-eX. Key events included Sotheby’s failed sale of Alberto Giacometti’s *Grand tête mince* in May, followed by a record-breaking $236 million sale of Gustav Klimt’s *Portrait of Elisabeth Lederer* in November, and a $31.4 million record for François-Xavier Lalanne’s *Hippopotame Bar*.
The mixed results highlight the art market’s sensitivity to macroeconomic and sociopolitical volatility, including new national leaders, ongoing wars, and U.S. tariff policies under President Trump. Shifting collector demographics, as Boomer wealth transfers to younger and female buyers, are reshaping demand. The market’s recovery was driven by a 'safety first' mindset among buyers, more realistic estimates, and increased third-party guarantees, which kept 'bought in' rates at a historic low of 4%. The closure of Blum Gallery underscored ongoing challenges for galleries, while the strong performance of design objects like Lalanne’s work signals evolving tastes.