Last Updated on January 27, 2025 by Yasmina

Thinking about investing in Lombok? With this guide, discover whether buying land or a villa is the best choice for your goals and budget.

Why Lombok is Perfect for Investment

Lombok, Indonesia, is quickly becoming a favorite spot for property investors. Its pristine beaches, rising tourism, and affordable prices compared to Bali make it a tropical paradise full of opportunities. With government-backed projects like Mandalika and growing global interest in Indonesia as a travel destination, Lombok offers an incredible mix of untapped potential and scenic beauty, making it a hotspot for investment. But what’s the smarter choice: buying land, an off-plan villa, or a completed villa? Let’s explore the pros and cons of each.

Why Buy Land or a Villa in Lombok?

Benefits of Buying Land:

1. Design Your Dream Property: Land gives you the freedom to design and build exactly what you want. Whether it’s a luxury villa, eco-friendly resort, or even a commercial space, owning land means you’re in charge of creating a vision that suits your needs.
2. Lower Costs: Land typically costs less than ready-built villas, allowing you to start small and scale as needed. This affordability makes land an appealing option for first-time investors or those working within a strict budget.
3. Higher Value Growth: Land in developing areas appreciates in value as infrastructure like roads, utilities, and amenities improve. This is especially true in Lombok, where tourism is driving rapid development in key areas.
4. Flexibility: Unlike a villa, land allows you to build multiple properties to maximize income or adapt to changing market trends, such as building eco-tourism accommodations or creating mixed-use spaces.

Drawbacks of Buying Land:

1. Takes Time: Developing land into a finished property is a long-term project. You’ll need to secure permits, hire contractors, and oversee construction, which can take months or even years.
2. Infrastructure Issues: Some land plots in Lombok are in remote areas where infrastructure is not yet developed. This can increase costs if you need to install electricity, water, or roads.
3. Legal Hurdles: Indonesian property laws can be complex, especially for foreigners. Ensuring proper land certificates and understanding leasehold agreements or the use of a PT-PMA (foreign-owned company) is crucial.

Best For: Investors with a long-term vision who want to customize their property and are prepared for the challenges of development.

Why Buy an Off-Plan Villa in Lombok?

Off-plan villas, which are properties sold before or during construction, are becoming a popular investment option in Lombok. Here’s why:

Benefits of Buying an Off-Plan Villa:

1. Lower Purchase Price: Off-plan villas are typically sold at a discounted rate compared to completed properties, offering great value for early buyers.
2. Modern Designs: Most off-plan projects feature contemporary designs with luxury amenities, ensuring high rental appeal once completed.
3. Payment Flexibility: Developers often offer installment payment plans, reducing the need for a large upfront investment.
4. High ROI Potential: By the time construction is complete, the property’s value often increases, providing an opportunity for capital gains or competitive rental income.

Drawbacks of Buying an Off-Plan Villa:

1. Construction Risks: Delays or changes in the project can occur, so it’s essential to work with reputable developers.
2. Limited Customization: While some customization options may be available, your choices are limited compared to buying land.
3. Upfront Commitment: You’re investing in Lombok which doesn’t yet exist, which requires a leap of faith in the developer’s ability to deliver.

Best For: Buyers looking for modern, hassle-free investments with long-term growth potential and flexible payment options.

Why Buy a Completed Villa in Lombok?

Benefits of Buying a Villa:

1. Move In or Rent Out Immediately: Villas are ready to use, making them perfect for buyers who want immediate value. You can start living there or generating rental income right away.
2. Great for Rental Income: Many villas in Lombok are designed for the tourism market, offering features like private pools, ocean views, and luxury amenities. These elements attract tourists and drive up rental prices.
3. Luxury Appeal: A villa often comes with modern interiors and high-end facilities, which make it an attractive option for both vacationers and high-net-worth buyers.
4. Hassle-Free: When you buy a villa, there’s no need to worry about construction delays, design decisions, or obtaining permits—everything is already in place.

Drawbacks of Buying a Villa:

1. Higher Upfront Cost: Villas tend to be more expensive than land or off-plan properties, especially in premium locations like Kuta or Selong Belanak.
2. Limited Customization: You’ll need to work with what’s already built, and significant renovations can add to the cost.
3. Maintenance Costs: Owning a villa means you’re responsible for regular upkeep and repairs, which can be costly, especially for older properties.

Best For: Buyers who want immediate returns or a stress-free investment with less time commitment.

What Should You Consider?

1. Your Goals:
   • Want quick rental income? Go for a completed villa.
   • Planning a long-term project? Choose land.
   • Seeking modern design with flexibility? Consider an off-plan villa.
2. Budget:
   • Land is more affordable but requires additional development costs.
   • Villas and off-plan properties require higher investments but offer quicker returns.
3. Time Commitment:
   • Building takes time, while off-plan villas and completed villas offer faster results.
4. Legal Requirements:
   • Foreigners can own land via leasehold or through a PT-PMA (foreign-owned company).
   • Villas and off-plan properties often come with pre-arranged ownership structures, simplifying the process.

Final Thoughts: Land, Off-Plan Villa, or Completed Villa?

Choosing between land, an off-plan villa, or a completed villa depends on your investment strategy and timeline:

• Buy Land if you’re looking for long-term growth and a custom project.
• Buy an Off-Plan Villa if you want modern designs, flexible payments, and growth potential.
• Buy a Completed Villa if you want a hassle-free investment with quick returns.

Each option has unique benefits, so consider your goals, budget, and level of involvement before deciding.

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]

Follow us on Instagram and LinkedIn for the latest Lombok Real Estate news and listings!