No one can say exactly how large Estonia's overall art market is, as a significant portion of works change hands directly in artists' studios.

Gallerist Siim Raie, whose master's thesis at the Estonian Academy of Arts examined why people buy art, says that in addition to the seven auction houses operating in Estonia, nearly 40 companies are involved in the art business. Many of them handle both the primary market — art sold directly from the artist — as well as exhibition work and the secondary market.

"The total volume of the Estonian art market is somewhere around €20 million per year. The same rule applies to the art market as to business in general: if something isn't on the shelf, it can't be bought. That means galleries and auction houses play a major role not only in shaping the overall direction but also in developing public taste and creating the market," Raie said.

Vernissage Gallery, which has operated in the art market for 24 years, brought 168 works by 85 artists to its weekend auction. The selection included older classics, artists from the Pallas school, as well as contemporary creators.

"The oldest piece is from 1847. It's a painting by August Matthias Hagen — a magnificent, museum-quality work with a starting price of just €18,000. The most recent work is by Liis Örd, completed in 2024, with a starting price of €2,600," said Vernissage gallerist Kristiina Radevall.

According to the seasoned gallerist, a work's price at auction can increase twentyfold or more.

"Last year, the most expensive piece was Villem Ormisson's painting "Portrait of a Blind Man," which sold for a hammer price of €195,000," Radevall said.

A new record for contemporary art was set at the recent spring auction of Haus Gallery. Tiit Pääsuke's 1989 painting inspired by traditional Estonian folk costume, which had a starting price of €24,000, sold for €133,000. At Allee Gallery, another Pääsuke work achieved the highest hammer price — €87,000.

Record prices were also set for works by Richard Uutmaa, Ando Keskküla and Valdur Ohakas.

Veteran gallerist Piia Ausman said that this year's auction participants made more deliberate decisions rather than being driven by emotion.

"If someone decides they want a particular work, they're more likely to pay more and stay in the bidding until the end, rather than look for alternatives. That's the general pattern. Over the past two years, the number of auction participants hasn't changed, but behavior has shifted slightly," said Ausman.

Still, nearly a quarter of the works put up for auction go unsold or are purchased for their starting price.

"As far as I've kept statistics, real bidding wars happen with only about a third of the works. That might also be a message to auction organizers: the days when everything could be sold at auction may be over for now, because participants expect a certain level of quality," Raie noted.

A study on art buyers by the international art fair Art Basel suggests that the biggest influence on the art market in the coming years will be generational change — the transfer of assets from one generation to the next.

"The secondary market is driven by three human tragedies: bankruptcy, divorce and inheritance. These are usually the moments when people have to decide how to divide up assets — what to sell and what to keep — and that's when generational shifts begin to take shape," Raie explained.

A shift is already visible in Estonia's market.

"In earlier years — and looking further back — it was Pallas school artists and pre-war art that dominated auctions and headlines. Today, most offerings consist of post-World War II art and artists," said Raie.

--

Follow ERR News on Facebook and Twitter and never miss an update!