Why is Lombok the Best Place to Invest Right Now?

Sunset in South Lombok - Invest in Lombok

Have you thought about investing in Lombok? The island is famous for its beautiful beaches and rich culture, making it an attractive choice for investors.

In this article, we will explore the booming potential of real estate in Lombok, and discover what makes buying a Lombok land an attractive investment opportunity.

Lombok’s Rising Profile in Real Estate

A Hub of Natural Beauty and Culture

Lombok Island properties are popular because of the unique combination of diverse landscapes and cultural richness found throughout the island, including areas such as Selong Belanak and Senggigi. The island’s natural beauty and cultural heritage attract both tourists and investors.

  • Diverse Landscapes and Cultural Richness: If you’re interested in investing in real estate, Lombok is a great place to consider due to its various landscapes. Each location on the island offers a unique investment opportunity, such as the peaceful beaches of Selong Belanak or the challenging terrains of Mawi. The island also has a rich culture, with local festivals, traditional crafts, and unique architecture. This combination of natural beauty and cultural depth makes Lombok an attractive destination for both investors and tourists, which increases the demand for properties there.

  • Impact on Property Desirability: Combining stunning landscapes with rich cultural experiences can make properties more attractive to investors who want to enjoy them personally or use them for rental income.
Sunset with purple hues at Selong Belanak Beach

Growth in Tourism and Development

The island’s increasing popularity as a tourist destination has accelerated growth in infrastructure and amenities, enhancing the appeal of Lombok real estate.

  • Tourism Boom Fuelling Infrastructure: The growth of tourism in Lombok has led to the creation of new areas beyond the popular destinations of Kuta and Senggigi. Selong Blank and Mawi are among these newly developed areas. This increase in tourism has helped to improve infrastructure, including better roads, airport facilities, and the availability of amenities such as shopping centers, restaurants, and entertainment options.

  • Enhancing Real Estate Appeal: Tourism growth has led to positive development in Lombok’s real estate market. This has attracted investors who see the potential for higher returns due to the increased demand for accommodations. From luxury resorts to cozy vacation homes, there is a growing need for places to stay, which is driven by the increasing number of tourists visiting the area.
Kuta Mandalika sign

Comparative Advantage Over Neighboring Regions

Lombok’s real estate market is growing, and prices are more competitive than those in developed regions. This makes buying land in Lombok particularly attractive for early investors.

  • Competitive Pricing in Emerging Markets: Investors have been keeping an eye on Bali for quite some time now. However, Lombok is still in its early stages of growth. The advantage of this for investors is that the cost of acquiring property in Lombok is relatively lower. This offers a lucrative opportunity for early investors compared to more developed markets.

  • Potential for Appreciation: Investing in Lombok’s real estate promises attractive returns as the island develops and its value increases. It’s a great opportunity for both experienced and new investors due to the lower entry cost and potential for appreciation.

Key Areas for Investment in Lombok

Kuta

Known for its magnificent beaches and surf spots, Kuta is a tourist paradise and a hotspot for property investment.

  • Beachfront Beauty and Surfing Haven: Kuta, Indonesia, has some of the most beautiful beaches in the area, which is why it’s so popular with surfers and beach lovers. The area is perfect for a vacation getaway, and there’s always something to do. Because of its popularity, Kuta has many beachfront properties, boutique resorts, and residential developments.

  • Investment Opportunities: Investment opportunities abound in Kuta due to the high demand for accommodations and leisure facilities. Potential investors can capitalize on the area’s tourism potential, ranging from opulent villas to commercial developments.
Kuta Lombok beach

Senggigi

As the main tourist hub, Senggigi offers a vibrant lifestyle and a variety of investment options in Lombok land.

  • Vibrant Tourist Hub: Senggigi is the main tourist town on the island. It’s a lively place with a mix of beaches, nightlife, and cultural experiences. Compared to other parts of the island, it’s well-developed and has various facilities and activities to attract visitors.

  • Varied Options: Investors can find various options in Senggigi, a well-established area that consistently attracts tourists. These options include developing hotels, resorts, retail spaces, and residential properties.
Senggigi coast - things to do in Lombok

Selong Belanak and Mawi

These regions are gaining attention, making them exciting options for investors.

  • Emerging Markets with Untapped Potential: These areas are gaining recognition for their pristine natural beauty and tranquil environment. They represent emerging markets within Lombok’s real estate landscape.

  • Growth Prospects: Investing in Selong Belanak and Mawi could result in significant profits as these areas have beautiful beaches that are not yet overdeveloped. The accessibility of these locations is also improving, which adds to their potential as popular tourist destinations.
Untitled design 21

Torok

  • A Hidden Gem Poised for Growth: Torok is a beautiful area that many people consider to be a hidden gem. It’s becoming more well-known and is located on an island. The natural environment there is peaceful and relaxing, with green hills and a calm coastline that offers stunning views.

  • Opportunities for Secluded Luxury Developments: Torok’s appeal stems from its unspoiled beauty and seclusion, making it an ideal location for luxurious resorts, private villas, and high-end residential projects. Investors targeting individuals seeking privacy and luxury in a natural setting will find Torok particularly attractive.

Tunak

  • Natural Splendor and Adventure: Tunak stands out with its dramatic landscapes, featuring rugged cliffs and pristine beaches. It’s a haven for nature lovers and adventure seekers, offering opportunities for eco-tourism and outdoor activities like hiking and bird-watching.

  • Eco-Friendly Potential: The unspoiled nature of Tunak makes it ripe for eco-friendly and sustainable development projects. Investments in eco-resorts, nature retreats, and adventure tourism facilities could align well with the growing global trend towards sustainable travel.
Tunak Beach Lombok

Understanding the Lombok Property Market

Navigating the legal aspects, such as understanding the different land ownership titles, is essential for those looking to buy land in Lombok.

  • Understanding Land Ownership Titles: In Lombok, like in much of Indonesia, land ownership titles are critical for foreign investors to understand. The most common titles are: ‘Freehold’ (Hak Milik) and ‘Leasehold’ (Hak Sewa). While foreigners cannot directly own freehold land, they can enter into long-term lease agreements, typically up to 25 years and extendable. Another option is the ‘Right to Build’ (Hak Guna Bangunan or HGB) title, allowing foreigners to own a structure on leased land.

  • Navigating Regulations: Foreigners need to navigate various regulations, such as restrictions on land size, location, and type of property. Partnering with a knowledgeable local legal advisor is essential to ensure compliance with Indonesian property laws and regulations, which can be intricate and vary from region to region.

For more details about ownership structure and how foreigners can invest in Lombok, read our complete guide to buying a property in Lombok post.

  • Current Trends in Key Areas: The Lombok real estate market is experiencing a notable uptick, especially in prime areas like Kuta and Senggigi. These regions are seeing increased interest in residential and commercial properties, driven by the island’s growing tourism and infrastructure developments.

  • Predictions for Growth: The future outlook for Lombok’s property market is optimistic. Investment in infrastructure, like the new International Airport and the Mandalika Motogp Circuit, in addition to improved road networks, enhances accessibility and attracts more tourists. This is expected to increase property values, particularly in developing areas like Selong Belanak, Mawi, Torok, and Tunak.

Effective Investment Strategies in Lombok

Diversity in Investment

  • Spreading Investment Across Different Areas: To maximize potential returns and minimize risks, investors should consider diversifying their property portfolio in Lombok. This could mean investing in commercial real estate in bustling areas like Senggigi and exploring residential properties in more serene and upcoming areas like Torok and Tunak.

  • Types of Properties: Diversification also extends to the types of properties. This can range from beachfront villas in Kuta Lombok to eco-friendly retreats in Tunak, catering to different market segments, from luxury travelers to eco-conscious tourists.

Collaborating with Local Experts

  • Leveraging Local Knowledge: It is invaluable to partner with local real estate agents and legal advisors with in-depth knowledge of the Lombok market. They can provide insights into local trends, legal nuances, and cultural factors affecting investments.

  • Strategic Decision-Making: Local experts can assist in identifying strategic locations for investment, understanding regional development plans, and navigating the legalities of property transactions. This collaboration ensures that investment decisions are well-informed and aligned with the investor’s goals and market dynamics.
Kuta Lombok Group Photo

Lombok – A Rising Star in Real Estate

With its stunning landscapes, growing tourism, and a promising real estate market, the island is emerging as an attractive destination. Whether you’re eyeing a beachfront property in Kuta or a commercial building in Senggigi, this beautiful island offers diverse opportunities to suit various investment preferences. As you consider your next move, consider how Lombok’s real estate potential could align with your financial goals.

If you’re looking for guidance? Our team at Nour Estates can assist you in making strategic decisions. We provide a comprehensive service that includes identifying potential locations, understanding the legal and regulatory environment, and offering advice on sustainable and profitable opportunities.

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 just 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!

Some FAQs about Lombok Island

Is it worth investing in Lombok?

Investing in Lombok presents a compelling opportunity for both seasoned and new investors. As part of Indonesia’s 10 New Bali initiative, the island is on its way to becoming a major tourist destination, with the government actively improving infrastructure, such as roads and the international airport, to accommodate the increasing number of tourists. The island’s natural beauty, combined with its cultural attractions and adventure tourism opportunities, makes it an attractive option for investment in accommodations, co-living spaces, restaurants, cafes, and wellness centers.

How much does it cost to build a house in Lombok?

The cost to build a house in Lombok varies widely depending on factors such as location, size, design, materials used, and whether the property includes amenities like a swimming pool. Infrastructure costs can also significantly impact the overall expenses, especially in areas where government-provided infrastructure is not readily available. These costs might include the installation of drainage, electricity, water, waste systems, retaining walls, and access roads​

For a concrete example, a 2-bedroom villa on a 300m2 plot in Selong Belanak can cost around $100,000, including the land, villa with a swimming pool, and furniture, ready to use and rent out. The construction period for such a project is typically around six months​.

However, the prices can increase based on the villa’s size, location, and luxury level. For instance, a 3-bedroom villa on a 700m2 plot might cost around $250,000, and a 2-bedroom villa on a 1000m2 plot in a prime location like the heart of Senggigi with a fantastic view could reach up to $290,000​.

Read our blog post on Expert tips for building a villa in Lombok.

Can you buy land on Lombok?

Yes, foreigners can buy land in Lombok, but there are specific pathways and legal frameworks they must follow. The most secure way for foreigners to acquire property in Indonesia is through establishing a PT PMA (Foreign-Owned Company). This entity allows foreigners to own land with a Hak Guna Bangunan (HGB) title, which can be held for up to 80 years. This title provides a close equivalent to freehold ownership available to Indonesian citizens, known as Hak Milik, but is specifically tailored for foreign investors through their companies​.

Can you live in Lombok?

Yes, foreigners can live in Lombok, and it’s becoming an increasingly popular destination for expats seeking a more relaxed and laid-back atmosphere compared to Bali’s overcrowded beaches and bustling towns. While direct land ownership is restricted, foreigners can legally acquire property through establishing a PT PMA (foreign-owned company). This enables them to own land with a Hak Guna Bangunan (HGB) title for up to 80 years. This process offers a level of security and control over property investments, making the island an attractive location for retirees, investors, or those simply looking for a peaceful retreat​.

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