Art Index - Australia's art market is firmly on the map.

Here's how investors can diversify away from the ASX and other asset classes, and unlock bullish yields ASX News 5 hours ago  Jonathon Davidson The Market In a world where there’s more money than ever before and it feels like everybody is trading equities at some point or another, it’s perhaps fair to say that older types of asset classes have been overlooked.



This article was origonally disseminated in partnership with Art Index Pty Ltd. It is intended to inform investors and should not be taken as a recommendation or financial advice.

And one of the oldest investment vehicles (ignoring that stock markets have a rich history going back to the 1600s) is one you probably walk past examples of every single day – physical art.

Art Index Pty Ltd is one company operating in Australia (note that the company isn’t publicly listed on the ASX). Headquartered in Sydney, the company operates in an interesting space worth consideration.

While the COVID years may have battered around art markets in recent history (after all, you couldn’t physically attend art auctions during the lockdown years), there’s plenty of room for growth in the years ahead.

Corporate art rentals

While not the entirety of what Art Index gets up to, the company ultimately allows investors to buy individual pieces of art from proven, highly established, highly traded and awarded artists whose artworks have already appreciated in value over the last 10 to 50 years.

Those paintings are then rented out to corporate clients – think office buildings, lawyers’ waiting rooms, and even executive collections – with investors receiving a fixed rental income for each piece acquired, ranging from 7% to 10.25% net per annum under a legally bound contract.

Art Index is, without doubt, operating in a fairly niche space. But with nearly 18 years of history behind the company, it’s a proposition not without its potential for attractive yields.

Howard Arkley, Floral Interior, 1996. Ref: AASD

There are multiple benefits here. A place to store capital that isn’t correlated to highly volatile stock markets, a class of assets for which international sentiment currently hinges more or less on the performance of seven tech megacap stocks in the U.S.

Recent auction strength shows Australian interest

If it’s a space you’re not too familiar with, it’s worth highlighting some recent developments.

In May 2025, celebrated Australian artist Howard Arkley managed to fetch A$2.5M for his piece Neapolitan delight, a pop-art style piece reminiscent of works from Andy Warhol and Roy Lichtenstein, channelling Arkley’s interest in the aesthetics of Australian suburbia.

Worth noting is that the piece was expected to fetch around $1 million – less than half of what it ended up selling for.

Howard Arkley, Neapolitan Delight, 1993 – Ref: AASD

Arkley is just one name among many when it comes to trending Australian artists of interest to the domestic market.

In more recent history, a rare piece of Australian artist Brett Whiteley’s has just made its way into a pending art auction to be conducted by Menzies.

And according to Art Index CEO Sacha Clemens, this isn’t too surprising.

Australian art market resilient

“In summary, the Australian art market is showing resilience… the market is becoming more segmented, with strong performance in certain areas like Indigenous art, Australian blue-chip artists and high-value works,” Clemens told HotCopper.

And especially in the area of Indigenous art, highly coveted around the world by both museums, corporate clients and private collectors, there’s also cause for excitement down under.

“In the first half of 2025, the indigenous art market has seen impressive growth in comparison to last year, already $11.7m in global sales, whereas 2024 ended with $13.48m in total sales. If the trend continues, it could increase up to 50%.

“Artists such as Emily Kame Kngwarreye have led the way.”

Art Index has a focus on ethical acquisition

Art Index is uniquely poised when it comes to Indigenous Art sales and ownership.

The company has teamed up with the Blackroo Community Indigenous Corporation (BCIC), led by Kamilaroi man and BCIC founder Steve Fordham, allowing Australian investors exposure to Indigenous art collections via Art Index.

And when it comes to Australian art pieces created by Indigenous Australians, there’s considerable upside potential.

“The likes of recently retired artists like Warlimpirrnga Tjapaltjarri, George ‘Hairbrush’ Tjungurrayi, and Ronnie Tjampitjinpa, as well as the newer generations of artists such as Wynne Prize winner, Yukultji Napangati, continue to show strong potential in the art market landscape.”

“We also envisage some of the late Australian masters such as John Olsen, Jason Benjamin, Margaret Olley, Howard Arkley, Fred Williams, Jeffrey Smart, and John Coburn will continue their upward trend in values,” Clemens elaborated to HotCopper.

2026 outlook is promising for art at home and abroad

The ultimate value proposition that art continues to provide – whether exposure to art rentals or direct collection, or otherwise – also looks set to remain resilient in the months and years ahead.

Get this: According to Straits Research, the global art market fetched a collective value of US$552B in CY2024, and that’s expected to grow to nearly one trillion U.S. dollars (US$944B) by 2033.

That same firm estimates the global art market to hit US$585B by EOY CY2025.

And as offices continue to mandate return to work policies, Art Index CEO Sacha Clemens sees a strong future ahead for the company.

“The future is looking brighter as people are now coming back to the office with employers wanting to make the work environment more aesthetic, which studies have proven to drive productivity,” Clemens explained, in a nod to Art Index’s art rental investment product component.

The latest UBS Global Wealth Report also revealed that no fewer than one in 10 Australians are now millionaires in USD terms, which also suggests an investment landscape with no shortage of participants looking for asset classes with which to diversify.

“New generations are realising art has historically, over millennia, remained a solid asset class through the values of creation, history, alternative investment and cultural identity,” Clemens said.