Invest in works of urban art?
The question that arises is whether it is safe and profitable to invest in urban art. In the opinion of António Prates, gallery owner for over 30 years, this is a good time to bet onurban art. “I acquired and continue to acquire some [works], because it is a movement with a lot of strength and I believe in it as one of those that are historically preponderant.”
Jornal de Noticias askedVhils Is it worth investing in urban art? The Portuguese artist stated: “In principle, any investment in art, despite being underestimated, has a huge return, not only in terms of the sustainability of the artistic world, but also in terms of long-term returns in terms of communication in the country, municipalities, or who wants to draw attention to something. They are things that last in space and create emotional connections with people, bringing a return far superior to any other investment in magazine advertising, internet or whatever. Then, on the private side of art buying, many of these artists started to sell their works very cheaply and, nowadays, their activity is going well, not only in Portugal but abroad. They have collectors who buy pieces from them and the auctions themselves show their value. Therefore, whether in this movement or in art in general, any investment is always something that has a return. I was always concerned with collecting, making exchanges, helping artists in more complicated times. I've always done that. For me, it's emotionally important. I don't see myself as an investor. I see myself supporting artists and being able to gather a collection of this movement, because not many people do that.”
Currently, the works ofVhils, Bordalo II or Add Fuel are part of the 'Portuguese signature' of urban art around the world. In recent years, there has been a growing increase in support for this movement, which is a great advantage for investors. Do not forget that a well-valued work is not only one that returns the investment in the future, but also fills the eyes of the buyer when he sees it. One has to think about the balance of personal taste and return on investment in the acquisition of a work of art.
Urban Art and the Real Estate Field
Aurban art it has gained supporters all over the country and many cities have made room for this style of expression. In the field of real estate, the enhancement of buildings, apartments, commercial establishments and, above all, urban areas through the intervention of international artists is increasingly concrete. Jornal Expresso recalls what happened to the neighborhood of Shoreditch, in London, populated by works by Borondo, Banksy or the PortugueseAdd Fuel orVhils. Shoreditch is now one of the most desirable areas to live in London, especially for young people. Although prices seem to have stabilized, between 2013 and 2014, there were increases of between 25 and 30%. “In 2014, whatever we put on the market sold, regardless of price,” recalls Martin Phillips, director of Fyfe Mcdade's Shoreditch branch. The same effect of attraction is replicated all over the world, from Montréal — where the walls were much emptier and housing much cheaper; Miami's Wynwood, a former warehouse district turned fashion destination through the Goldman family operation; or, leaving the western world, to the island of Djerba, in Tunisia, a village where rents more than doubled after an urban art festival that brought together 150 artists, including four Portuguese.
“Today, artists are asked to paint murals because landlords think it will attract wealthy new tenants and drive away the graffiti that normally discourages them,” wrote Elena Martinique in Widewalls, a magazine specializing in urban culture. Architects often already include space for interventions in their projects.urban art. Martinique points out the case of a building in Chelsea, New York, which supports two paintings by the Brazilian Eduardo Kobra. Since 2012, “the market value has risen from $880,000 to $2,075,000, and real estate agent Michael Rosser says the murals have contributed 15% of this growth. Banksy pieces were known for doubling the value of properties from one day to the next”, he reports. Most of the time, the projects are presented as urban rehabilitation actions with social motivations and supported by municipalities and real estate brokerage companies, such as Kaufman & Broad (partner of the StreetArt13 initiative, which renewed the image of the 13th arrondissement in Paris) or The Ratkovich Company (in Los Angeles, which paid WRDSMTH to paint eight murals downtown). About this phenomenon Pedro Soares Neves, a researcher at the Faculty of Fine Arts in Lisbon, believes that it is not an artist or an isolated building that manages to mark the phenomenon of real estate appreciation through urban art. There is a whole environment that combines.