Inflation and Inspiration: The Turkish Art Market’s Road to the 18th Istanbul Biennial

Art enthusiasts and collectors visiting 18th Istanbul Biennial in the historic streets. © Cenk Usel.

Since the last 17th Istanbul Biennial in 2022, the city’s art institutions have undergone significant evolution, the economic landscape for artists has shifted, and changing geopolitical dynamics have further impacted art investor confidence. This year’s Istanbul Biennial arrives at a pivotal moment, offering an opportunity to revive an art market characterized by resilient institutions and a strong arts community, yet still challenged by persistent underlying problems.

Art Business Under Pressure

Amid the current political and economic challenges, this year’s 18th Istanbul Biennial holds a unique position to support emerging galleries, as well as established spaces and fairs that continue to operate their art business under the pressures of high inflation, rising rents, increasing equipment costs, and commissions. Similar to the broader global art market—including major centers such as London and New York—art sales in Istanbul have also been negatively affected. Unable to sustain growth or open new exhibition spaces, many galleries are struggling to expand sales, maintain their client base and support their cash flow.

Institutions in Motion: Fresh Directions Across Borders

Since the 17th Istanbul Biennial in 2022, Istanbul’s private, municipal, and public art institutions have gained momentum through new projects, exhibitions, and expanded dialogue with the city’s residents.

Private institutions such as Istanbul Modern (backed by the Eczacıbaşı Group), Arter (supported by the Koç Group), İşbank Sanat Müzesi (funded by İşbank), and Sabancı Museum (backed by the Sabancı Group) have staged consequential exhibitions featuring artists including Olafur Eliasson, Ali Kazma, David Hockney, and Osman Hamdi Bey. These exhibitions have successfully reignited public interest in both blue-chip local and international artists, aiming to share their stories with Turkish audiences and spark critical discourse. By bringing star names into their programming, private museums have been highly effective in drawing crowds into the white-cube spaces, thereby solidifying public attraction.

Secondly, since the 2022 biennial the Municipality of Istanbul has been continuing to renovate and revitalize several historically and culturally significant sites, transforming previously idle spaces into important public venues. With free admission, these spaces now host exhibitions of long-forgotten prominent Turkish artists, reconnecting audiences with the roots of modern and contemporary Turkish art. The municipality’s commitment and investment in arts and culture are particularly praiseworthy given the challenging context—where the mayor faces legal obstacles, government financial aid is consistently reduced, and the municipality’s finances are constrained by creditors.

Last but not least, this month a Turkish gallery Dirimart has successfully established its first international outpost in the heart of London. This expansion has the potential to foster meaningful connections between Turkish and London-based artists. In the near future, such collaborations could allow international artists from the gallery to showcase their work in both Istanbul and London, creating a dynamic cultural exchange. In today’s economic climate, it is unusual for a Turkish gallery to open a branch abroad, making this endeavor particularly noteworthy for Turkish and international arts community.

Art enthusiasts and collectors visiting 18th Istanbul Biennial in the historic streets. © Cenk Usel.

High Art Market Valuations

Political headwinds, inflationary pressures, and rising real estate costs have all shaped the way Turkish emerging artists price their work in 2025. The devaluation of the Turkish lira, combined with increasing food prices and higher costs for studios and materials, has directly influenced their creative process, choice of medium, and perspective on the art business. Against this backdrop, it is not surprising to see the prices of local Turkish artists’ works rise sharply in both local and foreign currency terms.

However, in the absence of stable and reliable art market data, many emerging artists have resorted to setting high prices primarily to cover living expenses and production costs. Compared with their counterparts in the UK and US, some Turkish artists are pricing their works at strikingly high levels.

Exceptions exist for quality works that warrant and deserve strong valuations, but for recent graduates without gallery representation or solo exhibitions, such inflated pricing is difficult to justify.

Confidence in an Uncertain Market

In recent years, investment confidence has been undermined by the negative events such as high inflation, political pressures and inadequate foreign interest. The absence of reliable price ranges, the circulation of counterfeit artworks through Instagram auctions, and the scarcity of reliable art market data have all contributed to reduced liquidity in the market.

Art enthusiasts and collectors visiting 18th Istanbul Biennial in the historic streets. © Cenk Usel.

At recent auctions and fairs, seasoned investors have scaled back their art investment spending. Yet a new generation of collectors is steadily stepping in, fueling demand both in galleries and through new online platforms like BeArtShare, launched by Evin Gallery. Their enthusiasm has brought some stability to the market. Still, growth of art sales among galleries remains sluggish. Few new gallery spaces are opening, job opportunities are scarce, and Turkish artists are underrepresented at international fairs—signs that point to a sector caught in stagnation.

Mixed Art Market Moods

Important institutional developments in the Turkish art market, when combined with negative factors such as weakened investor confidence, pressures on the art business, and shifting valuation dynamics, have created a mixed market environment in 2025. Regional challenges and Turkey’s internal economic difficulties continue to exert a strong influence on the country’s art market, shaping both its intrinsic risks and opportunities.

It is important to recognize the growing support and success of art market institutions in Turkey, including private museums, exhibition spaces, and new initiatives with international reach. The continued commitment of private families and institutions remains one of the main pillars of the Turkish art market. They have consistently sustained their support, even in times of pandemic, inflation, and economic crises, ensuring the resilience and continuity of the cultural ecosystem.

Poster of 18th Istanbul Biennial. © IKSV & Art50.net

A Breathing Space for Istanbul

The 2025 Biennial offers a glimpse of hope for the Turkish art market at a time when multiple crises are unfolding and deeply affecting the lives of both audiences and collectors in Istanbul. The global art world has been under mounting pressures—ranging from tariff increases and conflicts in the Middle East to the lowest sales figures since the 2008 financial crisis. In this context, biennials have become some of the most sought-after events, valued for the dialogue, collaboration, novelty, and inspirational narratives they foster.

The 18th Istanbul Biennial arrives as a timely catalyst for Turkey’s art market, bringing together local and international collectors while spotlighting emerging and established artists. Through its exhibitions, talks, and collaborations, the event seeks to restore trust & integrity, foster dialogue, and inject fresh momentum into a market still grappling with underlying challenges.

This year’s title, Three-Legged Cat, resonates strongly with the current sociological climate of the city, which, despite its resilient institutions and vibrant artistic community, continues to struggle with persistent underlying challenges.  

The title Three-Legged Cat naturally sparks common questions about the contemporary Turkey and Istanbul: what became of the missing fourth leg, how should it be cared for, and what response does it demand? 

These metaphorical themes will echo throughout the Biennial, explored not only through artistic practices but also through debates, philosophical conversations, and open dialogue—making this year’s edition both timely and thought-provoking.

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*The views expressed in this article are solely personal opinions and should not be considered as investment advice.

Cenk Usel

Art Market Professional