What motivates art buyers – Motivations of HNWIs 2023

We recently presented a summary and important findings from Art Basel UBS Art Market Report.

In the article "Weltwei Kunstmarkt 2023/2024 - Outlook , we focus on recent developments on the worldwide art market for dealers, gallery owners and art collectors.

This significant economic analysis on the condition of the market (see The Survey of Global Collecting 2023 ) also provided us with a well -founded forecast of future developments for 2024.

However, the report was neglected in the motive and motivation behind the art purchases and intentions of the High Net Worth Individuals (HNWIS) - to illuminate people with available household assets of over $ 1 million.

Here, too, the Art Market Report valuable insights into the thoughts and emotional worlds of the capital-strong art collectors.

The most important motives for the purchase of art

When asked about the main reason for the purchase of a work of art, factors that are related to their own identity and personal pleasure most importantly regarded (37 %) .

Next followed financial motives (28 %) and third parties were relationships , including social contacts and network activities in connection with the collecting of art and participation in the art market (14 %) .

It is not surprising that most people buy works of art to express their own identity and personal pleasure. After all, a well -chosen painting or a sculpture change the ambience of a room and give the owner a feeling of pride.

However, financial motives also play an important role in many collectors. A good investment in the form of a high -quality work of art can prove to be extremely profitable in the long term - provided, of course, that you have the right nose for promising artists and works.

However, relationships in connection with art collecting should also not be underestimated. The exchange with other collectors as well as contact with gallery owners and auction houses can bring valuable experiences and show new perspectives.

Overall, this survey clearly shows that interest in art goes far beyond mere aesthetics . Rather, it reflects our individual preferences, but also our striving for higher social status and our desire for a meaningful leisure activity away from the stresses of everyday life.

Sunken tendency to resale

Almost half (48 %) of the collectors with high net assets had sold works of art again after the purchase, 38 % of them in the period from 2022 to 2023.

Although only a small minority of around 10 % described themselves as "investors" , many wealthy collectors were actively involved in trade in their works of art.

Almost half (48 %) of these collectors had already resold works, with 38 % of sales taking place in 2022 and 2023. However, this was a significant decline compared to the years 2020 (60 %) and 2021 (49 %).

Only 5% of the collectors bought and sold their works again within one year, while 39% of the fact that they kept their works of art on average up to three years before they would resell them (it was 30% the year before).

The majority of collectors (83%) decided to resell their works within five years of purchase.

Financing of art purchases

A considerable number of 43 % of wealthy collectors had lent money to finance their art purchases. Of these, 30 % did this in 2022 and 2023.

For those who used loans, the average proportion of the value of their collections financed with these loans was around 29 %.

In comparison, the average of the very wealthy collectors was higher 39 % and a third of them had acquired over half of their collections with the help of borrowed capital. This contrasts with only two percent of those with a wealth of less than $ five million.

Over half (54%) of all motivated art collectors had a financial background for their acquisitions and benefits for loans or loans (in contrast to only 39% without financial motives).