Last Updated on March 12, 2025 by Yasmina
Lombok is quickly becoming one of Indonesia’s hottest property investment destinations, attracting investors looking for affordable real estate, high rental yields, and long-term capital appreciation. While Bali remains a well-known investment hub, Lombok offers something different: lower entry costs, less saturation, and increasing demand from both tourists and expats.
But is property Investment in Lombok Is a Smart and Safe Bet in 2025? The answer is a resounding yes—and here’s why.
Table of Contents
1. Lombok’s Property Market Is Still Undervalued
Compared to Bali, property prices in Lombok are still significantly lower, making it a high-potential investment market. Investors who enter now can benefit from:
✔ Lower land prices – Prime beachfront and hillside plots are still affordable.
✔ High growth potential – Prices are rising as more investors enter the market.
✔ Early-mover advantage – Buying now means securing property before demand drives prices higher.
2. Increasing Tourism Is Driving Rental Demand
Lombok’s rising tourism numbers are fueling demand for private villas and vacation rentals, especially in areas like Kuta, Selong Belanak, and the Gili Islands.
Why tourism is growing:
- The Mandalika Project has brought global attention to Lombok, with MotoGP and world-class infrastructure developments.
- Lombok is increasingly seen as “Bali’s quieter alternative”, attracting travelers looking for less crowded beaches and more authentic experiences.
- The government is investing heavily in roads, airports, and tourism facilities, making the island more accessible.
Investment Tip: Short-term rental villas are among the most profitable real estate investments in Lombok, with annual yields of 8-12%.
3. Strong ROI and High Rental Yields
One of the biggest advantages of investing in Lombok Property Investment is the high rental yields compared to investment costs.
Expected Rental Income:
- 1-bedroom villa: $80 – $200 per night
- 2-bedroom villa: $150 – $350 per night
- 3-bedroom luxury villa: $250 – $500 per night
✔ Peak season occupancy rates can reach 80-90%, especially in popular areas.
✔ Annual rental yields for well-marketed villas range from 8-12%, compared to Bali’s 6-8% average.
Example: A $200,000 villa in Lombok can generate $30,000 – $50,000 per year in rental income, making it a cash-flow positive investment.
4. Major Infrastructure Projects Are Boosting Property Value
The Indonesian government has identified Lombok as a key investment area, leading to significant infrastructure upgrades that are increasing land and property values.
Key Developments in 2025:
✔ Mandalika MotoGP Circuit – Attracting international visitors and sports tourism.
✔ Lombok International Airport Expansion – Increasing accessibility for foreign travelers.
✔ New roads and highways – Connecting key investment areas like Kuta, Selong Belanak, and Gerupuk.
✔ Planned luxury resorts and eco-tourism projects – Driving up real estate demand.
Investment Tip: Buying property near these developments can lead to strong capital appreciation over the next 5-10 years.
5. Legal Pathways for Foreign Investors Are Well-Established
Unlike some other Southeast Asian countries, Indonesia offers clear legal pathways for foreigners to invest in property, especially in Lombok.
Investment Options for Foreigners:
✔ Leasehold Land (Hak Sewa) – Secure long-term leases (25-80 years) with renewal options.
✔ Right to Build (Hak Guna Bangunan – HGB) – Foreign investors can build and own villas through a PT PMA (foreign-owned company).
✔ Off-Plan Developments – Many developers offer structured investment deals with high ROI potential.
Legal Tip: Always work with a trusted notary (PPAT) and legal consultant to ensure a smooth transaction.
6. Sustainable and Eco-Friendly Villas Are in High Demand
Eco-conscious travelers and digital nomads are increasingly choosing Lombok over Bali, seeking sustainable, nature-focused experiences.
Popular sustainable investment options:
✔ Solar-powered villas – Energy-efficient properties appeal to eco-conscious renters.
✔ Rainwater harvesting & permaculture retreats – Growing demand for self-sufficient homes.
✔ Low-density developments – Buyers prefer privacy, green spaces, and eco-living.
Investment Tip: Eco-villas and sustainable resorts command higher rental rates and attract long-term guests.
7. Lombok Offers a Better Quality of Life for Expats & Retirees
Beyond investment potential, Lombok is also an ideal place to live, attracting expats, retirees, and remote workers looking for a slower pace of life.
Why expats love Lombok:
✔ Lower cost of living compared to Bali.
✔ Less traffic, pollution, and over-tourism.
✔ Access to untouched beaches, surfing, and outdoor adventures.
✔ Growing expat community, especially in Kuta and Selong Belanak.
Tip: Many investors buy a villa for personal use and rent it out while away, creating a passive income stream.
Final Thoughts: Is Lombok Property Still a Safe Investment in 2025?
YES! With affordable land prices, rising tourism, strong rental yields, and major infrastructure projects, Lombok remains one of Indonesia’s most promising real estate markets.
Why Lombok Is a Smart Investment in 2025:
✔ Undervalued market – Buy now before prices increase further.
✔ High rental demand – Growing tourism ensures strong occupancy rates.
✔ Government-backed developments – Infrastructure projects are driving long-term growth.
✔ Secure foreign investment options – Legal pathways are available for overseas buyers.
If you’re considering property investment in Bali but want higher ROI and less competition, Lombok is your best alternative.
FAQs: Investment in Lombok Is a Smart and Safe Bet
1. How much does it cost to buy a villa in Lombok?
Prices range from $150,000 – $500,000, depending on location, size, and luxury features.
2. Can foreigners buy land in Lombok?
Foreigners cannot own freehold land but can invest through leasehold agreements (Hak Sewa) or a PT PMA company.
3. What are the best areas to invest in Lombok?
Kuta, Selong Belanak, Gerupuk, and the Gili Islands offer the highest rental yields and appreciation potential.
4. What is the average ROI for rental properties in Lombok?
Most investors see 8-12% annual returns from short-term vacation rentals.
5. Is Lombok safer than Bali for investment?
Yes, Lombok has less market saturation, lower entry costs, and strong growth potential, making it a safer and more profitable long-term investment.
About Nour Estates
We started Nour Estates with a simple idea: to make finding your dream land in Lombok as easy and enjoyable as a day at the beach. Our team is a mix of local folks and people from around the world who fell in love with Lombok like you. We’ve been in your shoes, faced the challenges of buying land here, and learned all the ins and outs. Now, we’re here to share that knowledge with you.
We are here to find you the perfect land to invest in. Contact us today, and let’s start this exciting journey together!
Email: [email protected]
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