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Gallery closures and downsizing suggest that the art market faces challenges, even after the impressive results for a certain auction in the autumn of 2025. The global market is also seeing the rise of new regional hubs, according to Citi Wealth.
The global art market entered 2026 with a spring in its step,
with optimism at levels not seen since 2022, but confidence is
“highly selective” and several galleries have closed.
Traditional art auction powerhouses such as London and New York
have contended with slow growth and structural changes, while the
international market keenly anticipated the Art Basel event in
Qatar, in early February, Citi Wealth said in a
report, State of the Art Market 2026: Don’t Call It A
Comeback. (The Art Basel event in the Gulf state was held
before the US and Israel engaged in military clashes with Iran
over the latter’s nuclear programme.)
“As of early 2026, confidence has returned to the art market, but
not uniformly. Optimism is focused at the market’s high end and
its accessible end. By contrast, sentiment toward the middle of
the market is selective and cautious,” Betsy Bickar, art advisory
head, Citi Wealth, said in the report. “Geographic power is also
becoming less concentrated, as emerging regions have gained
influence while traditional centres contend with slower growth.
Rather than broad upward momentum, the market is characterised by
buyer discernment.”
After a run of declining sales, Bickar noted that the November
2025 Modern and Contemporary Art Auctions in New York registered
a total of $2.2 billion – surging by 77 per cent on the same
period a year ago, although down 30 per cent from 2022’s
high-water mark.
“There is no better example of strength at the top end of the
market than the headline-grabbing $236.4 million fetched by
Gustav Klimt’s Portrait of Elisabeth Lederer (1914-1916),” she
wrote. “Drawn from the collection of the late Leonard Lauder,
this storied painting set a new auction record for the artist and
became the most expensive Modern work ever sold at auction. (It
was also the most expensive piece ever sold by the venerable
auction house Sotheby’s). With an opening bid of $130 million,
the contest lasted for over 20 minutes, with six unique bidders
vying to acquire this iconic work,” she said.
The behaviour of the fine art market and the volume and value of
sales at auctions and in other channels can be a barometer of how
optimistic or not HNW individuals feel about their wealth and
life in general. Fine art, while a large “niche,” is also an
investment area in its own right. According to the latest UBS and
Art Basel annual report, issued in March, the global art market
returned to growth in 2025, with sales increasing by 4 per cent
year-on-year to an estimated $59.6 billion.
“The art market entered 2026 amid greater optimism than we have
seen since its peak in 2022. The positive sentiment is largely
the result of headline-grabbing results at November 2025’s
marquee Modern and Contemporary Art auctions in New York and
reports of strong sales at major art fairs, including Art Basel
Paris and Miami,” Bickar said. “The inaugural edition of Art
Basel Qatar has elevated the Middle East’s standing on the
international art scene, notwithstanding the uncertainty
following recent geopolitical events.”
Gallery closures
Bickar noted that the November 2025 season, while it had its
bright spots, also pointed to a lack of confidence in the
contemporary market. “Numerous galleries in the US and worldwide
closed in 2025, largely in the second half of the year,” she
wrote. One of the most striking closures was that of Tim Blum’s
eponymous BLUM gallery. Another closure was the Venus Over
Manhattan gallery in New York, which had operated for 14 years.
Other large galleries have shrunk, with some locations being
discontinued. The trend continued into this year, Bickar wrote.
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