Editor’s Note
As the lines between art and luxury continue to blur, the auction world is navigating a shifting landscape. While experts maintain that fine art will remain the core of major houses, the evolving market dynamics present new questions about the future of these storied institutions.
Since the art and luxury markets began to converge, numerous voices in the auction world have questioned what will happen if luxury item sales surpass art sales at renowned houses like Christie’s, Sotheby’s, and Phillips. Although this possibility is firmly dismissed by industry experts, the reality is that the environment is changing.
In 2025, Christie’s reported art sales of $3.7 billion, representing nearly 60% of its total revenue. Sotheby’s, for its part, generated $4.3 billion with a similar percentage coming from art, while Phillips approached $927 million in consolidated sales, of which $290 million corresponded to watches. However, the figures reveal that luxury sales have taken off. In 2025, the luxury auction market reached $1.84 billion, an 18% growth compared to the previous year.
The automotive sector has been a key driver in this trend. Recently, Christie’s raised over 50 million euros in Paris through 90 lots of automobiles, setting a record of over $234 million in sales of this type. Sotheby’s also surpassed one billion dollars in car sales, marking a milestone in its operations.
As the luxury market prospers, the identity and strategies of auction houses are evolving. Sotheby’s, for example, has begun to adopt an approach that transcends the art realm, aiming to represent a comprehensive luxury space. At its Abu Dhabi Collectors’ Week event, the house transformed restaurants into a luxury sales environment, showcasing items from high jewelry to classic cars. Notably, no artwork was sold during that week, evidencing a shift in commercial dynamics.
Guillaume Cerutti, former CEO of Christie’s, downplays the idea that this change threatens the essence of auction houses. According to him, diversification into luxury sales simply reinforces the business model, as objects like jewelry and automobiles have always had their place in the history of these institutions.
However, Tad Smith, former president of Sotheby’s, warns that a significant shift towards luxury could radically change the nature of an auction house.
Art market expert Magnus Resch describes this transition as a “structural transformation,” where the focus is shifting from objects to customers. In this sense, Sotheby’s seeks to provide major buyers with a comprehensive experience: acquiring everything from renowned art to vintage limousines.
The growing wealth in the Middle East has increased demand for luxury items, with a market estimated at $13 billion. During its event in Abu Dhabi, Sotheby’s raised $133 million in a single week, indicating a clear inclination for luxury in this region.
The perception of art as a luxury object has been recognized by many in the sector, who argue that the two markets are not as binary as one might think. Even so, some experts are skeptical about whether this luxury boom will last. It is questioned whether a focus on luxury is merely strategic or if it can truly be sustained over time.
Buyer dynamics are also changing. In 2025, 38% of new buyers at Christie’s made their first purchase in the luxury category, while at Sotheby’s, 35% of new bidders came from this same realm. This phenomenon blurs the boundaries between art collectors and luxury consumers, opening new growth opportunities for auction houses.
As the auction landscape continues to evolve, it is clear that the intersection between art and luxury is transforming the perceptions and expectations of the market as a whole. These houses seek to maintain their cultural prestige while simultaneously adapting to an economic environment in constant change.
