Size Matters — And painting wins: The rules of art market returns

Art as investment: new insights and emerging opportunities

A recent academic study from Tilburg University, “Pricing Art and the Art of Pricing: On Returns and Risk in Art Auction Markets”, sheds new light on the financial performance of art as an asset class. Based on over 2 million auction results worldwide, the research shows that, despite its unique nature as a non-financial asset, art can play a valuable role in a diversified investment portfolio.

Steady returns with targeted upside

A key finding is that contemporary art vs. other genres, yields the highest average annual real return, outperforming traditional categories such as Old Masters, Impressionists, and Modernist works.While the overall average real (inflation-adjusted) ROI across all paintings was 2.49%, contemporary artworks often exceeded this benchmark, especially when acquired early in an artist’s career.

Among contemporary works, oil paintings generate significantly higher returns than other media such as, Works on paper, Sculpture, Photography and prints.

Paintings dominate the top tier of performance likely because they are moretraditionally collectible and displayable, and often carry higher perceived valuecompared to editioned or mixed-media works.

© Francis Vanhoonacker

Size matters: The “sweet spot” for returns The researchers also analyzed physical dimensions of artworks and found that returns vary significantly by size, even within the same medium and genre.Mid-sized contemporary paintings — those in the range of 50–100 cm in height or width — offered the highest return on investment.While Very small works may lack visual impact or perceived value, Oversized works are more difficult (and costly) to transport, frame, store, or display — which can limit resale potential and buyer interest.Mid-size works, on the other hand, strike a balance between collectibility, versatility, and affordability — making them attractive to a wider collector base.

So why does Contemporary Art perform better?Contemporary art is a more dynamic and speculative segment. While this means higher risk, it also creates greater upside for investors who identify rising stars early.Next, there is growing global demand. The past two decades have seen a surge in interest from younger collectors, new wealth from Asia and the Middle East, and increased institutional attention to living artists.Adding to this is that contemporary artists benefit from current cultural narratives, social relevance, and media visibility, all of which can drive rapid value appreciation.Finally, a smaller initial investment can lead to larger multiples. Collectors who purchase contemporary works at relatively accessible prices can see significant multiples if the artist gains traction in the market.

A smart choice for the long-term collector

Art remains a long-term investment, not a rapidly traded asset like equities. But the market is evolving:

• Greater transparency

• Growing participation by younger collectors

• Rising interest in emerging and affordable artists

• Better access to resale opportunities through digital tools

For collectors and investors who value cultural meaning, visual impact, and long-term financial growth, art offers a rare combination—especially now, as the market moves toward greater accessibility, sustainability, and digital trust.

© Francis Vanhoonacker

From illiquidity to access: The role of digital sales platforms

Traditionally, the art market has struggled with low liquidity. Many works disappear from the market after purchase, resale opportunities are limited, and price transparency is often lacking. But this is exactly where a major shift is now underway:

Digital platforms like Tagalart are making the secondary art market more accessible, transparent, and dynamic.

• They foster an active network of buyers and sellers, making it easier for works to change hands.

• Transaction costs are much lower than those of traditional auction houses.

• The platform focuses on works in the affordable mid-tier segment (under €50,000)—precisely where, according to the 2025 Art Basel Art Market Report, the most robust growth is taking place.

• By emphasizing curation and quality, Tagalart offers a trusted environment even for newer collectors with smaller budgets.

In doing so, platforms like Tagalart are helping to solve the liquidity challenge that has long characterized the art market.

In short: yesterday’s challenges are becoming today’s opportunities— and platforms like Tagalart are leading the transformation.