Behind Closed Doors: The Shift from Public Auctions to Private Art Sales in the Global Art Market

Public auctions have long been the most visible arena of the art market, but recent trends show a shift toward private sales brokered by major auction houses. In 2024, while overall auction turnover declined, private art sales rose 14% year-on-year to $4.4 billion. Christie’s reported a 41% surge in private sales to $1.5 billion—their highest since the 2020 pandemic boom—while Sotheby’s saw a 17% increase to a record $1.4 billion.

© Christie’s. Rene Magritte’s L'empire des lumières for record-breaking $121.2M in New York in November 2024.

Why the Shift?

In times of economic uncertainty, sellers often prefer the control and certainty of private sales over the unpredictability of public auctions. Unlike selling art at auction, private transactions allow sellers to set price ranges and timelines, avoiding the reputational risk of unsold lots. Auction houses have embraced this trend, investing in private art sales as a key growth area, and now see more opportunity in brokerage than in the saleroom.

Reduced Transparency: A Distorted Picture of Global Art Market Sales?

As more deals move behind closed doors, the visibility of art market data diminishes. Public auction results—once the cornerstone of price discovery and valuation—are no longer a complete reflection of market activity. While global art sales fell 12% in 2024, this decline was concentrated in public auctions; private sales at auction houses actually grew. The market may be stronger than art auction data suggests, but it’s harder to measure accurately.

This opacity affects confidence. Analysts relying on public databases might wrongly assume demand is collapsing, when in fact, many deals are simply happening out of view. With fewer public benchmarks, valuations become less reliable, giving auction houses with access to private data a significant informational advantage.

Why Private Art Sales Appeal

Private art sales offer benefits to both sellers and auction houses. Sellers enjoy discretion, timing flexibility, and protection from public failure. For houses, private sales generate steady revenue, often with higher or comparable margins due to dual commissions and lower overheads. Christie’s and Sotheby’s now operate like elite galleries, matching buyers and sellers year-round.

Confidentiality is another key draw. High-net-worth clients, especially from regions such as the Middle East and Asia, often prefer discretion for security, tax, or personal reasons. Private art sales provide tailored service, exclusivity, and privacy—an attractive combination for all parties.

Is the Market Weak—or Just Less Visible?

Although headline auction numbers fell in 2024, the broader picture is more complex. The total number of transactions rose 4%, driven by strong activity in the under-£50,000 segment. Auction sell-through rates climbed to 84%—the highest since 2017 (excluding the 2021 boom). The middle market (£100,000–£1 million) remained stable, supported by committed collectors rather than speculative investors.

This suggests a rebalancing: the top end contracted, but the base and private channels expanded. The market isn’t uniformly down—art market trends are just evolving. 

The Impact of Blockbuster Collections

Auction results can also be skewed by major one-off sales. The $1.62 billion Paul G. Allen Collection in 2022 dramatically inflated that year’s totals. In 2024, the top 100 lots brought in $1.8 billion—less than half of 2022’s $4.1 billion. The absence of such landmark estates can make subsequent years look weaker than they are. Similarly, high-profile sales like the Ammann and Macklowe collections contributed hundreds of millions to previous tallies. Without comparable sales, year-on-year comparisons can mislead.

Private sales are now central to the art market, redefining how business is done at major houses like Christie’s, Sotheby’s, Phillips, and Bonhams. In a cautious economic climate, more collectors are buying and selling behind closed doors. A 14% rise in private sales in 2024 highlights this transformation. While public auctions may appear subdued, the market remains active—just more discreet. For collectors, that means greater privacy and tailored opportunities; for analysts, a reminder to look beyond the gavel when judging the market’s true health.

At Maddox Gallery, we specialise in guiding you through this shifting landscape, ensuring that your art transactions remain confidential, efficient, and advantageous. Connect with our expert Maddox Art Advisors today and discover the benefits of private art sales—where discretion meets opportunity in a rapidly evolving market.

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