RICS Arts and Antiques Q1 2011 Market Survey

The price of contemporary art rose significantly during the first three months of the year, as the UK art and antique market continued to perform well, says the latest RICS Arts and Antiques Survey published today (20 April 2011).

In the first quarter of 2011, 25 per cent of chartered surveyors reported that sale prices for contemporary art rose rather than fell, with works in the £1,000-£5,000 bracket performing particularly well. This represents a sharp increase from 8 per cent in the previous quarter and is the highest reading since Q3 2008. Buyers of contemporary art appear to be returning to the market and acquiring works as a tangible asset, rather than other forms of investment.

Silvers and jewellery recorded the highest readings, with 64 per cent and 46 per cent of surveyors reporting increases rather than decreases in prices in these categories respectively. These two sectors have now outperformed all others since the second half of 2009. Oils and watercolours, however, saw the lowest increase in price, with a net balance of +3.

Looking ahead, surveyors expect demand for art and antiques to increase over the coming year, as buyers continue to return to the market. When asked as to their expectations for the next twelve months, 51 per cent more respondents optimistically anticipated demand to rise rather than fall, suggesting a positive outlook for the coming months.

John Anderson, RICS Director, said:

“The sharp upturn seen in the contemporary art market over the last few months is encouraging, and the sector is now performing at its best level in well over two years. With sale prices increasing for works of all value brackets, it would appear that buyers are looking to contemporary works both for their investment potential and their aesthetic appeal.

“This positivity is reflected right across the art and antiques sector, with all areas experiencing rising sales prices. The more traditional items, such as precious metals and jewellery, are still the preferred lots but the growing demand for quality pieces is particularly noticeable in the salesrooms and this looks set to continue.”