Deloitte & ArtTactic 2017 Art & Finance Report

Launched at the 10th Deloitte Art & Finance Conference in Milan 8 November, the 2017 edition of the Deloitte and ArtTactic Art & Finance Report, in addition to the traditional art and wealth management survey, also provides global art market outlooks and highlights the intersection between art, finance and culture around the following areas:

  • Art and wealth management 
  • Regulation 
  • Technology and risk management

This year’s report is built on survey results encompassing around 350 survey respondents, including 69 private banks, 27 family offices, 155 art professionals and 107 art collectors. Moreover, 42 experts representing different aspects of the art or finance worlds have shared their insights through articles and interviews. The result is a comprehensive report which illustrates the trends and developments in the art and finance industry and the global art market in general. 

Amongst the Report’s Key Findings are:

The state of the global art market

  • The world’s UHNWI population to expand by 43% over the next decade 
  • A growing demand for luxury investments
  • A recovery of auction sales with the outlook for 2018 appearing cautiously optimistic
  • A positive outlook for the US contemporary art market
  • The potential for Brexit to have a negative impact on the UK contemporary art market
  • A positive outlook for the European contemporary art market
  • A slowdown in the South-East Asian market
  • The Middle East seeing Art making a good underlying asset for financing or investment under Sharia law

Art & wealth management survey

  • Stronger motivation to include art under wealth management
  • A majority of wealth managers offering art related services to their clients
  • Growth in clients buying art for financial as well as emotional reasons
  • Art and estate planning viewed as wealth managers’ most important service
  • Private banks and family offices focusing on art advisory services
  • More demand for services related to art and philanthropy

Art secured lending

  • 13.3% growth in US art secured lending ($17-20bn)
  • Risk management a key challenge

Art as investment

  • Art fund investment products remaining a niche market

Art & technology

  • Technology increasingly playing a role in the development of the art market
  • Continued growth in online sales
  • Auction and dealer markets converging online
  • The potential for Blockchain to revolutionise the art industry by resolving questions of provenance, and improving transparency, copyright, and ownership issues

Risk management & regulation 

  • Call for modernisation of the art market’s business practices
  • A preference for self-regulation over government intervention
  • Authenticity, provenance, forgery and related issues the greatest threat to the art market
  • Undisclosed conflicts of interest
  • Lack of standards around professional qualifications in the art market
  • Lack of market transparency

For the full report click here