According to a report by The Collector Guide from 360 ONE, the secondary art market in India reached 2543 crore rupees in 2025, showing growth compared to 792 crore rupees in 2015. This growth is attributed to increased wealth and broader interest in collecting. Nevertheless, investors considering art as an alternative asset should exercise caution due to high transaction costs, limited liquidity, and significant authenticity risks.
Why Art Attracts Buyers
Galleries, museums, art fairs, and cultural institutions are attracting new audiences to the market. Jaya Asokan, Director of India Art Fair, notes that there is a 'broader and more confident collecting culture.' Younger buyers are increasingly studying the works of emerging artists.
Wealthy investors are seeking new investment opportunities. Scarcity draws buyers to the works of recognized masters. Tushar Jiwarajka, Founder and Director of Volte Art Projects, asserts that 'art is a scarce asset, especially if the artist is no longer alive.'
Value Beyond Returns
Art allows owners to enjoy the asset while possessing it. Jiwarajka emphasizes: 'Besides generating income, you also enjoy the artwork every day.'
A collection can reflect the owner's interests and be passed down to the next generation. Asokan adds that 'a piece can grow financially over a long period, but it also has cultural, intellectual, historical, and deeply personal value.'
Understanding Risks
The art market is subject to cyclicality. Avinash Luthria, a securities consultant registered with the Securities and Exchange Board of India (Sebi) and founder of Fiduciaries, says that 'it has its cycles of euphoria and despair.'
Art is characterized by high illiquidity. Abhishek Kumar, a securities consultant registered with Sebi and founder of SahajMoney.com, points out that 'it does not generate income while held and incurs significant transaction costs that reduce returns.'
Another risk is information asymmetry. Luthria warns that 'less informed outsiders risk transferring their wealth to better-informed insiders.'
Uninformed buyers can also fall victim to fraudulent schemes, including auction bluffing, where someone pretends to be a bidder without intending to buy to artificially inflate the price. Vikram Bachhawat, Director of Aakriti Art Gallery based in Kolkata, notes that poor storage and maintenance conditions can decrease the value of a work, as dampness and direct sunlight can damage it. He also adds that 'repainting, re-gluing, tearing, and fading reduce the value of the artwork. Heavy restoration can also spoil the painting.'
Who Should Invest
Only those who possess an understanding of the art market should invest. Luthria cautions that many who believe they have such understanding may be deceiving themselves.
Careful Selection of Artists
Novice investors should avoid unknown artists. However, the most expensive names are not always the safest choice. Bachhawat believes that 'the prices of leading names may already reflect much of their potential growth.'
He advises looking for mature artists with a long, documented career, a stable creative legacy, and exhibition experience whose prices do not yet match their status.
Authenticity and Title Verification
Confirming authenticity before purchase is crucial. If possible, cross-reference the work with the artist's catalogue. If copies of the artist's works are common, consult an experienced specialist in their works.
Do not accept unsubstantiated claims that a work comes from a private collection. Bachhawat recommends 'seeking proof of ownership history, such as a gallery invoice, auction record, collection label, or exhibition list.' If the provenance of the artwork is unclear, refrain from buying, as a lower price cannot compensate for questionable origin.
It is also necessary to ensure that the seller has a clean title and is legally able to sell the work. A thorough assessment of its physical condition must be conducted, and an invoice must be obtained in your name, detailing the artist, title, material, size, year, and price.
Budget Setting
First, decide what portion of net capital can be allocated to art. Jiwarajka advises: 'Beginners should initially allocate 10 percent of the amount they are willing to invest, and then gradually increase this amount.'
Experts consider a minimum capital of 10 lakh rupees for a reliable portfolio. Kumar emphasizes that 'the budget must be sufficient to cover transaction, insurance, and maintenance fees without excessively concentrating capital in one asset.'
Holding Period and Fund Allocation
Art markets develop slowly, and even a good piece may not attract attention for years. Asokan advises choosing a piece that 'you will enjoy having, regardless of market fluctuations.'
Money needed in the near future should be kept outside the realm of art. Bachhawat recommends setting a minimum holding period of seven to ten years, and for greater security—ten to fifteen years.
Kumar suggests limiting the share of art to a minor portion, usually 2–5 percent of total net capital, so as not to tie up too many assets in illiquid property.
Precautions to Prevent Losses
Thorough research is necessary before purchasing. New investors should seek qualified advice until they understand the dynamics of this market. Bachhawat advises 'paying a fair price, rather than chasing artworks whose prices have recently risen.'
Finally, avoid unverified platforms. Buy only from reputable galleries or recognized auction houses that provide proper documentation.