Ever since we were young, we’ve been told that art is something worth investing in. Could this mean “invest financially”?
What is the common denominator between a rhino-shaped desk sold for €18.3 million and a thriving startup share? The answer might be surprising- both reflect today’s most lucrative investment trends. As the tech sector faces volatility, the collectible design market is gaining traction as an appealing alternative, promising high returns with lower risks.
The narrative behind this phenomenon is compelling. In recent years, the collectible design market has grown rapidly, drawing in not just traditional collectors but also savvy young investors looking to diversify their portfolios. Similar to the art market, where works by artists like Banksy or Damien Hirst are prized investments, collectible design is establishing itself as a prominent niche in alternative investments.
Old Meets New: Design Shares Compete for Investors’ Attention
Vintage design, especially from the first half of the 20th century, is celebrated for its exceptional craftsmanship, premium materials, and enduring aesthetic.
One remarkable example of success in this sector is demonstrated in the story of the French artist duo François-Xavier and Claude Lalanne. Their iconic Rhinocrétaire I desk sold for an extraordinary €18.3 million in 2023, yielding massive returns for early investors. Another great example for the profit potential emerging in this market is Eileen Gray’s famous Dragon Chair. Designed in the 1920’s and originally sold for just a few hundred dollars, it set a world record for the sale of a design piece when it was auctioned for €21.9 million in 2009. Further examples can be found in Philippe Starck’s Louis Ghost Chair, whose value has skyrocketed tenfold in the past decade, as well as Poul Henningsen’s Artichoke Lamp, which is now highly sought after by collectors.
At the other end of this spectrum, contemporary design reflects technological innovation, breakthrough materials, and revolutionary design concepts. For example, the Dutch studio Joris Laarman Lab is leading the revolution in the field with their digital Bone Chair, designed using algorithms that mimic bone growth in nature and sold for $500,000. The late British architect and designer Zaha Hadid created a furniture collection that blends advanced manufacturing technologies with parametric aesthetics, with some pieces already selling for between $300,000 and $800,000.
More and more designers are now integrating advanced manufacturing techniques such as 3D printing, complex materials, and biodegradable bio-materials. The MIT-based Neri Oxman Studio developed techniques for printing furniture made of organic materials that respond to their environment, with their latest table, “Aguahoja,” selling for $1.2 million. Meanwhile, the Dutch company Studio Drift incorporates artificial intelligence into their works, with creations like “Shylight,” a kinetic chandelier that mimics the movement of flowers in nature, selling for $900,000.
The online market and technology are also transforming the world of contemporary design in two key ways: First, they grant global access to auctions of rare items, making it easier for investors worldwide to participate. Second, digital platforms implement advanced blockchain technology to verify and secure the authenticity of items, enhancing trust and confidence in online transactions within the design sector.
Design Fairs: The New Arena for Investors
In recent years, international design fairs have emerged as key networking hubs for collectors, investors, and designers. Design Miami, hosted biannually in Basel and Miami, is one of the most prestigious events globally, featuring rare design pieces valued in the millions. Last year alone, the fair drew over 70,000 visitors and facilitated transactions totaling more than $200 million. Similarly, PAD London, held at the iconic Berkeley Square, has become a prime event for design investors, with a strong emphasis on blending historic and contemporary design.
Additionally, the Salon Art + Design fair in New York attracts top investors and collectors from North America, presenting unique exhibitions showcasing a fantastic fusion of art and design. Its latest edition featured more than 50 leading galleries from 14 countries and provided an in-depth look at current trends in the market.
Making its debut in Israel, the TAAD design showcase will present a one-of-a-kind opportunity in the world of collectible design. Set to take place in Tel Aviv, it will offer local investors the chance to explore a curated selection of design pieces from top international galleries and designers. What distinguishes TAAD is its unique approach to curating and importing the collection independently, guaranteeing an engaging and accessible experience. More than just an investment platform, the showcase offers valuable market insights, networking opportunities, and the great chance to purchase rare pieces at their genuine worth.
Risks and Opportunities in Collectible Design Investment
Like any investment, investing in collectible design carries risks. It is crucial to scrutinize the market in depth, conduct thorough due diligence, and verify the authenticity of items. Experts advise consulting experienced professionals, planning a diversified investment portfolio, and ensuring proper insurance and storage solutions.
However, despite the risks, investing in design items offers several unique advantages. It serves as a hedge against inflation, delivers impressive returns, and adds meaningful diversification to an investment portfolio. Additionally, the market’s relatively high transparency enables investors to gain a clearer understanding of emerging trends.
The future of design investment appears exceptionally bright. With rising demand from younger generations and deeper integration with technology, the market is poised for continued growth. Innovative fintech companies are now introducing fractional ownership opportunities for high-value design pieces, making the market more accessible to smaller investors. What sets design investment apart, beyond the potential financial returns, is its tangible enrichment of daily life: the experience of dining at a table that doubles as a work of art, or displaying flowers in a vase unlike any other in the world. It’s an investment that elevates a home from a mere living space to a personal museum—one you can live in.