Pablo Picasso's painting, "Women of Algiers (Version O)" or "Les Femmes d'Alger (Version 'O')," has become the most expensive artwork to be sold at an auction at a new world record of $179 million in New York.

The painting, part of Christie's special sale called "Looking Forward to the Past," is a vibrant, multi-colored work that features a juxtaposition of scantily attired women amid smaller nudes. It was created in 1955.

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In 1956, famed art collector Victor Ganz bought the painting. He was inspired by Picasso's period of fascination with the 19th-century French artist Eugène Delacroix. The painting is part of a 15-work series Picasso created in 1954-1955 designated with the letters A to O.

During Monday's auction, several bidders competed for the "Women of Algiers (Version O)"  through the telephone, which drove the price to $160 million for a final price of $179,365,000 that includes Christie's more than 12 per cent commission.

Currently, demand for modern, contemporary, and impressionist art is increasing. Before the auction, the painting, which falls under modernism, was expected to exceed $140 million but the final price reached unexpected estimates at Christie's auction house.  

Sarah Lichtman, a design history and curatorial studies professor at the New School says that Impressionist and modern artworks are popular in the market because "they are beautiful, accessible and a proven value."  She said that each auction cycle pushes the prices of these works as the "reputation of the artists become further enshrined."

According to experts, prices of artworks are driven by investment value including competition for the best works among the new and established collectors. In November 2013, Francis Bacon's triptych "Three Studies of Lucian Freud" was considered to be the most expensive work sold at an auction amounting to $142.4 million.

Overall, Mondays auction raked in a total of $706 million for 34 of 35 lots sold.   

TagsPablo Picasso, Picasso, painting, Women of Algiers, Auction, Christie's