Art has an enormously high status in Düsseldorf, its institutions and many artists enjoy a worldwide reputation. The art market also influences the economic prosperity of the state capital.

In 2022, the global art market had a trading volume of almost USD 68 billion - almost as much as in the record year 2014, according to the Düsseldorf based company arttrade in its Art Investment Guide 2024. By far the biggest slice of the cake was taken by the USA (45%), followed by the UK (18%) and China (17%). Germany tends to be at the back of the pack, with sales of around 2%. According to a forecast by Deloitte, around USD 1.5 trillion of private wealth worldwide was tied up in art and collectibles in 2020, rising to USD 1.9 trillion by 2025. In uncertain times like these, art is an increasingly important alternative asset, and no longer just for the very rich. What happens to a particular work of art and how its price evolves is a highly individual matter. Many different players and institutions play a role and work together: Galleries, art dealers, museums, collections, auction houses, foundations, art associations, art events, off-spaces - and, of course, the artists themselves.

View of the collection in the Kunstpalast

The art market in Düsseldorf is particularly impressive. First and foremost, the Art Academy is an internationally recognised development centre (see p. 30). The K20 and K21 of the Kunstsammlung NRW, two of the most important international museums for classical modern and contemporary art, stand for this. It is also represented by 23 cultural institutions owned by the city or in which the city holds a stake, including the Kunstpalast, the NRW-Forum and the Kunsthalle Düsseldorf. The 50 or so galleries throughout the city (see p. 18) - to name just a few indicators - also stand for this. "The art market in Düsseldorf is really important. If you go to international art fairs, for example, you will usually find some of the local galleries there. This is really only partially the case in other cities in Germany, some of which are much larger," says Felix Krämer. Since 2017, he has been the general director of the Kunstpalast Museum, the city's largest museum, which will shine in new splend our from the end of 2023 following extensive renovation work (see info box). "And the beauty of our city is that if you work in the arts, you don't have to explain to anyone what that means, because it's obvious in this city. The ratio of residents, artists, galleries, exhibiting institutions and museums is very different from other places. For a relatively small city, this is one of the areas where we play an international role.

OFF-SPACES

Off-spaces are non-commercial, independent exhibition spaces for young, not (yet) established contemporary art. They are usually run by the artists themselves, often art students. There are many in Düsseldorf, for example:
• Palace, Worringer Platz 1

• the pool, Tersteegenstraße 63

• Bilker Bunker, Aachener Straße 39

• Weiden Space, Ackerstraße 34

• LRRH Aerial, Kapuzinergasse 24

• Bloom, Birkenstraße 56

More off-spaces in Düsseldorf:

WWW. ARTJUNK.DE

Philara Collection, Rooftop Garden (Andres Schmitten, Kris Martin)

Rhineland Independent, an association of the private collections Philara, Arthena Foundation/Kai 10, Julia Stoschek Foundation and Langen Foundation, is also focusing on cooperation. "We are currently working a lot with public institutions, such as the Art Academy and the Borderland Residencies. However, it is not always cooperation that strengthens a market, which is no different in business than in the art market. It is the presence of many active participants that keeps the market alive," says Gil Bronner, who built the Philara Collection. In his eyes, the private collectors have become an integral part of the city, strengthening Düsseldorf's appeal as one of the most important locations for contemporary art in Europe. "The density of serious collectors is certainly higher here than in many other cities. However, Germany and the USA, for example, have developed very differently in recent years as locations for collectors. In the US, collectors tend to be more interested in established items over a hundred thousand dollars, which are difficult to sell in Germany. Here, on the other hand, people are usually more daring when it comes to young positions," says Bronner. And how do a vibrant art market and a thriving economy in Düsseldorf influence each other? "A strong economy invests in art and culture. Art in a company can reflect the company's values and goals and promote a positive corporate culture. Art can help strengthen a company's image. Conversely, companies that collect art actively support artists by buying and exhibiting their work, thereby strengthening the local art market. I therefore believe that there are many advantages for business to be involved in art," says Ljiljana Radlovic.

ART MARKET AND PRICE TRENDS

The art market is divided into primary and secondary markets. The primary market is where an artist's work is sold for the first time, usually through the representing gallery. From then on, the work is on the secondary market. Art dealers and auction houses play a particularly important role here. How an artwork gets priced is very complex. There are quantitative and qualitative factors. Quantitative factors are easy to measure, such as auction prices or gallery prices of a work. Qualitative factors are harder to measure. These include historical and current artistic significance (which is also influenced by art criticism and museum exhibitions), general demand, gallery representation, the quality of the work or the provenance of a work.

Source: arttrade Art Investment Guide 2024

To ensure that this interaction continues to work well in the future, the city's support and recognition of art as an important contribution to society will continue to be crucial. "During the pandemic, the city invested around 50 million euro to bring the Kunstpalast to this new state - this is anything but a matter of course. It also has to do with the framework conditions in the administration, in the city and in politics, which I know of in hardly any other city in Germany," says Felix Krämer. Gil Bronner believes that there is still a lot of potential to be tapped into if the Rhineland as a centre for the arts were to join forces to promote its many advantages as part of a larger supra-regional cooperation. "Our region is stronger than almost any other in all areas of culture, not only in the visual arts, but also in the performing arts. We have so much here within a 50-kilometre radius. In my opinion, this is simply not communicated enough. The interested public mistakenly always travels to Berlin, which is certainly interesting, but we have much more to offer". It is also important to keep young artists and art academy graduates in the city in order to give the market a fresh impetus. "The competition for bright minds is dramatic, and this has now reached the cultural sector. We have to offer an attractive environment for the whole economy, and culture plays a very important role in this," says Felix Krämer. The art market is not only a direct economic factor in the sense that a lot of money is made in the city through art purchases and productions. It is also an indirect factor in the sense that it enhances the quality of life in the city. "That is why art and culture should be self-confident and say: Yes, we are a factor in making life more attractive. And that in turn has a direct impact on economic prosperity," says Krämer. •

Impressions from the Kunstpalast: The equestrian portrait shows Elector Johann Wilhelm von der Pfalz, painted by Jan Franz Douven, 1703.

SAVE THE DATES: DC OPEN AND STRIKE A POSE FESTIVAL

The Düsseldorf Cologne Open Galleries (DC Open) will take place for the sixteenth time from 30 August to 1 September 2024. Around fifty galleries from both cities will present the exhibition highlights of the year, making the Rhineland the centre of the contemporary art scene.
WWW.DC-OPEN.DE

From 28 to 30 June 2024, the Strike a Pose Festival will take place for the third time. The festival brings together the creative forces of fashion and art from the region and, for the first time, from Israel, in a unique dialogue. The programme includes exhibitions and performances, accompanied by the fundamental question: How do we want to live in the future? Strike a Pose 2024 will focus on "Material World" - The Power of Textiles.
WWW.STRIKEAPOSEFESTIVAL.DE

Words: Tom Corrinth
Pictures: Stefan Müller, right: Kai Werner Schmidt, Courtesy Philara Collection, Düsseldorf, Anne Orthen

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