Global demand for Indian artwork declines by 51% in H1 of 2017

NEW DELHI, INDIA AUGUST 7: Delhi Art Gallery in Hauz Khas on August 7, 2014 in New Delhi, India. (Photo by Priyanka Parashar/Mint via Getty Images)

The demand for Indian artwork has witnessed a sharp decline of 51 percent among global art buyers in the first half (H1) of 2017.

Only 352 artworks were sold through auction globally in 2017 between January and June clocking sales of Rs 130.97 crore against the same time last year where 780 artworks were sold for Rs 271.12 crore.

Collector spending on Indian artworks has also deteriorated as the number of artworks sold in the price band of Rs 1 crore and above fell from that in 2016. Only 24 works were sold in H1 2017 against 47 works last year.

“On primary consideration, the effects of demonetisation are evident with a drop in the number of works consigned for sale. The number of works offered for sale fell approximately 40 percent in this period, that outlines the tentative concerns of a large grouping of sellers who would like to observe the movement of the market, tide the uncertain times and wait for tell-tale signs of optimism before consigning their inventory for sale,” said Arvind Vijaymohan, CEO, Artery India, an art intelligence firm.

According to Vijaymohan, the sell-through success rate of artworks offered for sale dipped from 83 percent in 2016 to 59 percent in 2017.

Hope remains

Interestingly, even after a marketwide slowdown, Artery India data revealed that a new world record for an Indian artwork by Tyeb Mehta was created when his work sold for Rs 22.9 crore in May, making it the fifth most expensive Indian work of art ever sold. In comparison, the most expensive work sold during the first six months of 2016 was Rs 18.6 crore for a painting by V S Gaitonde.

"This is a strong indicator of the growth potential and relative immunity of capital invested in a pre-qualified section of the art market that is not as prone to the market sentiment-driven volatility," Vijaymohan added.

(Untitled by Tyeb Mehta | Sold by Christie's for Rs 22.98 crore on May 25, 2017.)

Among other expensive artworks sold in H1 of 2016 included that of Tyeb Mehta sold by Pundole's in April for Rs 16.10 crore and V S Gaitonde. Sold at an auction by Christie's in May for Rs 13.56 crore.

Those sold in the same period of 2017 included works of V S Gaitonde sold by Pundole's in April for Rs 13.8 crore and Raja Ravi Varma sold by Sotheby's in March for Rs 11.06 crore.

(Untitled by VS Gaitonde | Sold by Sotheby's for Rs 18.64 crore on March 15, 2016.)

Vijaymohan feels that the next 3 months are likely to follow a tentative path, with stronger market activity recorded from October on account of 9-12 important assets due for availability via the private and auction channels. These include works by Ravi Varma, Gaitonde and Sher-Gil that are among the primary considerations.

tasmayee.roy@nw18.com