Luxury

InvestmentIndex

Madridspecial–Autumn2025

INTERVIEW-ICíARMANGASPERFORMANCE-LUXURYINVESTMENTINDEXGALLERYFOCUS-CAYLUS

MARKETVIEW

Welcome

ANAWHITE

PremiumResidentialPropertiesDirector,KnightFrankSpain

S?oPaulogreeteduswiththe

electricenergyofametropolisthat

neversleeps.Amongendlessavenuesandgraffiti-coveredfa?ades,we

discoveredavibrant,almostboundlessartscene.

AttheS?oPauloMuseumofArt

(MASP),theworksfloatedsuspendedintheair—freefromwallsandhierarchies—whiletheSESCPompeia,LinaBo

Bardi’ssocialutopia,remindedusthatartcanalsobeanactofcommunity,

somethingweexperiencedfirsthandatherGlassHouse(CasadeVidro).

Thegalleries,privatecollections,andencounterswithlocalartists

graduallyrevealedthehuman

textureofacitythatimaginesitselfthroughart.

ButitwasinInhotim,inthegreenheartofMinasGerais,wherethe

journeyreacheditshighestpoint.

Nothingpreparesyouforthat

experience.TwohoursfromBelo

Horizonte,theInhotimInstitute

opensuplikeahumiddreamof

jungleandmodernity:140hectaresofbotanicalgardens,lakes,

monumentalsculptures,andpavilionshiddenamongthevegetation.There,

artisnotcontemplated—itisinhabited.

SleepingatClaraArteInhotim,

thecountry’sfirstartistresidency,

prolongedthefeelingofbeinginsidealivingartwork.Wakingupamong

treesandsculpturesbyCildoMeirelesorYayoiKusamaissomethingyou

canhardlyforget.

I’dlovetohearaboutyourart

journey,sopleasegetintouch,anddoletmeknowifKnightFrankcanhelpwithanyofyourresidentialorcommercialpropertyrequirements.

+34600919010

ana.white@

Giventhatluxuryrealestateandartareinextricablyintertwined–even

abeautifulhousewithoutbeautiful

artonitswallshasnosoul–I’m

delightedtoshareKnightFrank

Madrid’slatestartandluxuryupdate.

MadridisnowfirmlyestablishedasoneofEurope’sartistichubs.

Hometoagrowingnumberofartists,galleriesandfairs,ourcityisahotbedoftalentandcreativity,whileevents

suchasArtWeekattractagrowingnumberofinternationalvisitors.

Influentialarthistorianand

influencerIcíarMangassharessomeofherthoughtsontheimportanceofArtWeekandtheContemporaryartscene,butit’simportantnottoforgetthatSpainhasproducedsomeoftheworld’sgreatestOldMasters.José

AntoniodeUrbinaofCaylusgalleryexplainstheirenduringappeal.

Wealsoexaminehowluxury

investmentmarketshavebeen

performingthisyear.Evenifpricesarenolongerrising,rememberthatart

andotherpassionassetsarecreatedtobringjoytoourlivesandshouldn’tbeviewedsolelyasaninvestment.

Oneofthejoysofworkingin

Madridisbeingsurroundedbysomanygalleriesfullofamazingart.

But,ofcourse,theartscenehereisshapedbyinfluencesfromallovertheworld.

Intermsofbothartistsand

collectors,LatinAmericahasplayed,andcontinuestoplay,analmost

symbioticroleinthedevelopment

ofSpain’sartisticlegacy.Iwas

delighted,therefore,tospendsometimethissummerexploringsome

ofBrazil’sstunningarthotspots.

Forninedays,artbecamea

wayofseeing,ofwalking,andevenofbreathing.

Cover:RetratodelaCondesadeChinchónbyFranciscodeGoya.

2ImagecourtesyoftheMuseoNacionaldelPrado

The

powerofart

IcíarMangasreflectsonthegrowingimportanceofArtWeekinMadridandtheevolvingroleofContemporaryart

THEIMPORTANCEOFARTWEEK

Theactivitygeneratedbythisfair

hasturnedthecityintoahotbedof

contemporaryart,withothersatellite

fairsandmanyotherprojectsrelated

tocontemporaryart,suchasthe

developmentoftheCarabancheldistrictwithitsartstudiosandgalleries.A

wholehubhasbeencreatedinthe

citythatbringsgreatdynamismtothesector,withprojectssuchasJustMad,Urvanityandmanyotherextremelyinterestingcontemporaryartpop-ups.

LUXURYINVESTMENTINDEX–MADRIDSPECIAL

Commissionersfromnational

andinternationalinstitutions,

alongwithcollectorsandinvestors,meetinMadridduringArtWeek.

Thishighlightstheinternationalrelevanceofourcity,whichalso

becomesashowcasefortheartistswhoarecurrentlyexhibitingtheirworkinmuseumssuchasLaia

EstruchattheReinaSofíaandofJuneCrespoattheEhrhardt

Florezgallery,which,ayearago,wasexhibitedattheGuggenheimMuseuminBilbao.

Withoutadoubt,ArtWeekis

essentialinmakingourselvesknownasaleadingcitycommittedto

Spanishtalentandcreativity.

GLOBALDISRUPTIONANDCONTEMPORARYART

Artistsarealwayscontemporary,

andtheirworkreflectsthehistoricalandsocialmomentinwhichthey

live.Theyare,inaway,visual

philosophersofcontemporarylife,andintheirwork,theyreflecton

whathappensaroundthem,fromapersonalpointofview.

Itisclearthatweliveina

geopoliticallycomplicatedmoment,withconflictsoccurringinmany

partsoftheworld.That,ofcourse,

isreflectedincontemporaryart.

Differentworksofferusdifferent

interpretations,fromgeopolitical

conflictstosocialinequalitiesorthepersonalbattlesoftheartistthattheviewercanidentifywith.

Iwouldsaythatincontemporaryart,therearetwomajortrends

relatingtothisdisruptivemoment:

artistsusingnewtechnologiesin

theirworkwhoarepioneersofa

neweradrivenbytheriseof

artificialintelligence,andartistsattheoppositeendofthespectrumwhowanttogettotherootof

artisticexpressionitselfbyreturntomaterialssuchasceramics

ortextiles.

Thiscleardualityisahallmarkofmomentsofuncertainty,suchasthepresent.

ARTANDGLOBALAWARENESS

Iwouldhighlighttheincreasing

importanceofartistsfromtheGlobalSouthwhoseworksareinfluenced

bydifferentfactorsthanthosefromtheNorthernhemisphere.SabrinaAmrani'sgalleryinMadridandherchoiceofartistsisaclearexampleofthat.

Closelyrelatedtotheabove,thereisagrowingappreciationofworkby

LUXURYINVESTMENTINDEX–MADRIDSPECIAL

“Artistsarealways

contemporary,andtheirworkreflectsthehistoricaland

socialmomentinwhichtheylive.Theyare,inaway,visualphilosophersofcontemporarylife,andintheirwork,they

reflectonwhathappens

aroundthem,fromapersonalpointofview.”

minoritygroups–andherewecan

talkaboutgenderandindigenous

communities.Forexample,SandraGamarra,thefirstmigrantartist

torepresentSpainattheVenice

Biennale,hasreinterpretedhistoricalworksbyVelázquez,Murilloor

ZurbarántoreflectonthecolonialbiasofSpanishheritage.

Inshort,wearefacingamomentofglobalawarenessthatalsohasitsspaceintheartworld.

ICíARMANGAS

Icíarisoneofthemostinfluential

womeninthecontemporaryartsector.Anarthistorianwithmorethan25

yearsofexperience,IcíaristhefounderofMappingCulture,aculturalagency

dedicatedtotheculturalandcreative

strategyofbrandsandinstitutions,

thecreatorof

artMunity

-acommunityclubforartenthusiaststhatcultivatesandnetworksbetweengalleries,

collectors,artistsandartlovers.Icíar

alsoworksasHeadofVIPCultivation&DevelopmentatArtBasel.

hello@mappingculture.art@mappingculture

3

Timetobuy

TheKnightFrankLuxuryInvestmentIndex(KFLII)fell2.7%lastyear.Has2025beenkindertocollectors’portfolios?AndrewShirleyaskstheexperts

Art,classiccarsandwinearethemainconstituentsofKFLIIand,asour

chartreveals,noneofthemenjoyedaparticularlystellar2024.Tradewars,relativelyhighinterestratesand

geopoliticaluncertaintymeanthatthistrendcouldcontinue.But,asoursectorexpertsexplain,thispresentsopportunitiesforgenuinecollectorsandbraveinvestors.

ART

ChristineBourron,CEO,Pi-eX

Themarketisstillfalling.We're

waitingforthatpointwhenitstarts

tocomeback,butithasn’thappenedyet.ForafewmonthsafterTrump

cametopower,oratleastuntilApril

2,therewasalittlebitofhope,buthis“LiberationDay”wasnotliberationfortheartmarket.Thetariffuncertaintyhasdefinitelyaffectedsentiment.

ThePi-eXAuctionMarketIndex

(AMI),ourbenchmarkindextracking

12-monthrollingworldwidepublic

auctionrevenueatChristie’s,Sotheby’s,

andPhillips,hasfallensharplyover

thepast30months,droppingfromitsFebruary2023peakofUS$14billiontojustUS$8billionbytheendofAugust2025,acontractionofroughly43%.

Butalthoughtheoverallpublic

auctionmarkethasbeencontractingoverallsincespring2023,there

continuetobepocketsofgrowth.

WhileLatinAmericanartsaleshave

alsoexperiencedadownturn,some

artistshavedefiedthetrend.FollowinghisdeathinSeptember2023,the

marketforFernandoBotero’sworkssawasignificantuptick.ByFebruary2025,hisartworkshadachievedmorethanUS$45millionintotalhammerpriceovertheprevious12months.

Newnamesareemerging.AmongthemisthesurrealistLeonora

Carrington,wholivedinMexicoformostofherlife.InMay2024,her

1945paintingLesDistractionsde

DagobertwassoldbySotheby’sforarecordUS$24.5million,overdoubleitslowestimate.

Anotherfemalesurrealist,Spanish-bornRemediosVaro,alsoachievedanewrecordpricewhenher1955workRevelación(Elrelojero)forUS$6.2

millionatChristie’s20th-centuryeveningsalethisMay.

Morerecently,Sotheby’ssale

inSeptemberoftheSurrealistart

collectionofPaulineKarpidasfetchedover￡100million.

CLASSICCARS

DietrichHatlapa,Founder,HAGI

Inthefirsteightmonthsoftheyear,thevalueoftheHAGITopIndex,

whichtracksthevalueof50collectorcarsfrom19differentmarques,roseby4.32%.

Carsaresellingandthemarketis

quiteactiveinsomesegments(butnotall).PebbleBeachauctionsintheUSinAugustshowedsomestrongprices,forexampleinnewerFerrarimodelssuchastheF40orF50.OurPorschemarqueindexisup19.65%in2025sofarafterlosing11.38%lastyear.

Amixedpicture

TheKnightFrankLuxuryInvestmentIndexQ22025

63.5%

11.4%

37.6%

13.3%

44.8%

PRICECHANGE

5-year12-month

21.7%

22.0%

21.7%

16.4%

4.9%

4.4%

2.5%

-9.7%

-20.2%

-8.8%

-13.6%

-25.3%

ART

RAREWHISKYBOTTLES

-0.2%

-0.4%

-1.6%

-2.4%

-2.7%

CARS

WATCHES

HANDBAGS

COLOUR

DIAMONDS

COINS

JEWELLERY

WINE

FURNITURE

KFLII

▲

Sources:CompiledbyKnightFrankResearchusingdatafromArtMarketResearch,FancyColorResearchFoundation,HAGI,RareWhisky101andLiv-ex

KFLIIisaweightedaverageofindividualassetperformance.Contactliam.bailey@forfullmethodology

4LUXURYINVESTMENTINDEX–MADRIDSPECIAL

PricesforclassiccarslikeAston

MartinandJaguarE-types,whichareverycoolbutnotreallyrare,haven’trisenforalongtime.Torestoreoneproperlycouldcost￡200,000,and

that’snotaninvestmentyou’llgetbackinthismarket.

IwouldsayDonaldTrump’s

tariffshavedefinitelycreatedlotsof

uncertaintythisyearandresultedinatwo-tiermarketgeographicallysinceithasbecomemoreexpensiveinmanycasestoimportcollectors’carsinto

theUS.

Ifyouhaveanexceptionalitem,justliketheartmarket,itwillsell.Andif

it'sreallyexceptional,itmayalsosell

forarecordprice.Agoodexamplewasthe1954Mercedes-BenzW196Grand

PrixcarthatwasdrivenbyJuanManuelFangioandStirlingMoss.RMSotheby’ssolditfor€51million,thesecond-

highestpriceforacarsoldatauction.

However,wearejustnotinascenariowherearisingtideliftsallboats.

Collectorsknowthattheydon’thavetochasethemarket.Theyarereallylookingforqualityandsomething

thatticksalltheirboxes.Andiftheydon’tgetit,they’rehappytowait.

WINE

NickMartin,founderWineOwners

Themarkethascontinuedtofall

overthesummerandautumn,but

themoreliquidsecondarymarkets

arebottomingout,withsomerecentsuggestionsofanuptick.Ifso,thesearebuttheearlydays.Weknowthatmarketshaveatendencytoovershootineitherdirection,andgiventhe

trendisdown,wemayseefurther

correctionsor,morelikely,stagnationinlessliquidmarkets.Thereare

signsofsomespringshootscomingoutofAsia,andifthatweretopickupmomentum,itwouldhelpthe

marketestablishabottom.Industrysentimentisslightlyimprovedsincemerchantshavereturnedfromtheir

summerbreaks,withtradingbroadly

upinSeptemberafteraverytoughhighsummerforprettymucheveryone.Asthemarketrecoversduringthecourseof2026,thefocuswillbeonvalue,no

moresothanintheon-trade,where

finewinemerchantsareincreasingly

competingwithtraditionalimporter-

distributorsforrestaurantand

hospitalitybusinessduetothetough

consumermarket.Primarymarkets

willneedtoreflectmarketconditionsforabroad-basedrecoverytotake

place,andtherearefewsignsofthat

happeningasyet,withsomeinsane

pricingattemptedthroughLaPlacebyTuscanandUSproducers,inparticular.Igetthatthetopestatesbehaveliketopbrands,butunliketheluxurywatch

market,forexample,theyarenotinthesamecontroloftheirchannelsofdistribution.Buttheycan‘decide’tomispriceandchoosenottoplayforawhile.Onecanonlybepositiveandlookforwardtoageneralrecovery.

Recordbreaker-Revelación(Elrelojero)isthemostexpensivepaintingbyRemediosVarotosellatauction.

Imagecourtesyof:Christie'sImagesLtd2025

LUXURYINVESTMENTINDEX–MADRIDSPECIAL5

AMadridinstitution

WetalktoJoséAntoniodeUrbina,directorofCaylus,oneofMadrid’smostinfluentialandimportantartgalleries

Overthepastfewdecades,

muchofthefocushasbeenon

contemporaryart.WhydidCaylusdecidetofocusonOldMasters

whenitopenedin1988?

Itwasthelogicalandnaturaldecision,sincethethreeoriginalpartnerscomefrom,let’ssay,theclassicalartmarket,havingbeenpartofthefirstSotheby’steaminSpain,whicharrivedherewithitsfirsthousesaleattheHohenlohe

PalaceinElQuexigal(1979).After

that,weremainedconnectedtothatauctionhouseuntilwefinallydecidedtostartourownbusinessasantiquedealersin1988.

Howhasthemarketperformedsincethen,andhowisitfaringatthemoment?

Fortunately,ourtrajectoryoverthese37yearshasalwaysfollowedan

upwardpath,andastimewenton,wedecidedtospecialiseinSpanish,Italian,andColonialoldpaintings.

Amongourworks,wealsoincludeancientcarvedandpolychrome

sculptures,whichareincreasinglyappreciatedbyourclients.

Undoubtedly,duringthecourse

oftime,wehavefacedsomedifficultmoments,suchasduringthe

Covid-19pandemic,butwehave

beenabletonavigatethroughthe

challengesbymaintainingour

commitmenttoabsoluteprofessionalethicsandexcellenceintheselectionofourartworks.

Theriseofcontemporaryartis

indisputable,butwebelievethattheoriginandessenceofartwillalwaysberootedintheclassicalworld.

Therefore,weareconfidentthat

clientsandthemarket,ingeneral,

willcontinuetoinvestinthetypesofworksweoffer.

Haveyouseenachangeinthe

popularityofdifferentartistsovertheyears?Whoismostindemand

now,andarethereany“new”namesthatareattractingattention?

The“popularity”ofthegreatmastershasremainedconstantthroughouthistory,andtheyarealwaysatthe

forefrontofthemarket.Itistrue,however,thatveryoccasionally

artistsarerediscoveredandgiventherecognitiontheydeserve.Thisiscurrentlyhappeningwithfemale

artistssuchasArtemisiaGentileschi,

SofonisbaAnguissola,LaviniaFontana,Josefadeóbidos,andLuisaRoldán

(alsoknownas“LaRoldana”),whowasanincredibleBaroquesculptor.Allof

themworkedundertheshadowoftheirartistfathersorhusbands,andnowtheyaregainingsignificantrecognition,withtheirworksbeinghighlysoughtafter.Inthisregard,weseeacurrentalignmentwithcontemporaryart,asthereisalsosubstantialsupportforfemaleartistsinthissector.

Regal-PrincesMargaritadeGonzaga,DuquesadeMantuabyFransPourbustheYounger.

Whoareyourbiggestbuyersof

SpanishOldMastersintermsofageandlocation?Haveyouseenany

changessincethegalleryopened?

Ourmainbuyersareclearlylocated

intwocontinents:Europeand

America,andtheyfallintotwo

categories:privatecollectorsand

museumsandinstitutions(both

privateandpublic).AlthoughwehavemadesomesalestoAsiancollectors,theytendtoprefercontemporary,

impressionist,andmorelocalartrelatedtotheirgeographicalarea.

Regardingagerange,whileitistruethatclassicalarthashistoricallybeen

moreappealingtooldercollectors,

wehaveobserved(andthishasbeen

confirmedthroughseveralsalesoverthepastfewyears)thatyoungercollectorsareincreasinglyshowinginterestin

OldMasters.Thereisagrowingtrendofcombiningcontemporaryworkswithmoreclassicalpiecesinhomedécor.

Weparticularlylikethisandactivelyencourageitwithourclients.

Howhaveyouseentheinfluxof

wealthycollectorsfromLatinAmericatoMadridinfluencetheartmarket?

ThearrivalofprominentnewSouth

AmericancollectorsinMadridhashadvirtuallynoimpactontheOldMastersartmarket.Theyareclearlyfocused

onacquiringcontemporaryart,withafewnotableexceptions–suchasanewMexicanclientwhorecentlysettledinMadrid.Itistrue,however,thatsince

thebeginningofourjourney,wehavealwayshadverygoodprivatecollectorclientsfromSouthAmericawhohavemanagedtobuildimportantcollectionsofSpanishandColonialart.

Whathasbeenyourmostmemorablesale?

OurmaininstitutionalsalehasbeentheRetratodelaCondesadeChinchónbyFranciscodeGoya,consideredhis

“Wehavebeenabletonavigatethroughchallengesby

maintainingourcommitmenttoabsoluteprofessional

ethicsandexcellence.”

Imagecourtesyof:Caylus

Mastersofdesign-AroomattheCaylusgalleryinMadrid

mostimportantfemaleportraitinaprivatecollection,nowattheMuseoNacionaldelPrado.

HastheCovid-19pandemicandtheriseofonlineartsalesaffectedhowyousellartandyourrelationshipswithcustomers?

Inacertainway,yes,sincewehavehadtostrengthenourpresenceonsocial

mediasuchasInstagramand,atthe

sametime,updateourwebsitesothatwecanbecomemoreattractivetotheclientandencouragethemtovisitourgallery.Infact,wehavesoldworksviaInstagram–somethingunthinkable

beforetheCovid-19eraforOldMastersart,asourworksnecessarilyneedtobeviewedinpersoninordertoproperlyappreciatethem,examinetheirdetails,andassesstheircondition.Thisisnotthecasewithcontemporaryart,whichismuchmoresuitabletoonlinesales.

AreinternationalartfairslikeTEFAFstillimportanttoyou?

TEFAFMaastrichtremainstheart

fairparexcellence,spanning7,000

yearsofhumanarthistory.Itis

unparalleledandindisputablythe

mostimportantfairintheartmarket.Wehavebeenparticipatinginitfor

over25years,anditisundoubtedlyoneofthemostsignificanthighlightsoftheyearforus,asitprovidesthe

opportunityfordirectcontactwithclients,directorsandcuratorsfromleadinginternationalmuseums,art

historians,colleagues,andallkindsofartworldprofessionals.

WhichworksofartthatyoutooktoTEFAFwereyoumostexcitedabout?

ForTEFAF,wealwaysmakeasuperbselectionofworksthatmeetthehighstandardsofthefair.Wealwayshaveafavouritepaintingamongtheoneswebring.Wecallthem“TEFAF-levelpaintings”–worksthatweespeciallylovefortheirartist,subjectmatter,

andsignificance.Thisyear,we

presentedamagnificentengagementportraitofPrincessMargaretof

Gonzaga,DuchessofLorraine,

paintedbyFransPourbustheYounger(17thcentury).

WhatplansdoesCaylushaveforthefuture?

Caylusaimstoremainakey