Lombok, an island located just east of Bali, is becoming an increasingly attractive location for property investment. With its stunning natural beauty, breathtaking beaches, and growing infrastructure, Lombok is quickly turning into a hotspot for both local and international investors. If you are considering purchasing land in Lombok, this guide will walk you through the key steps and essential information you need to make an informed decision.
Why Buy Land in Lombok?
Lombok offers numerous benefits that make it an appealing choice for property investors:
- Growing Economy: The island is seeing significant infrastructure development, with projects such as the Mandalika Special Economic Zone designed to boost tourism and attract investment. Project like the USD 3 billion Mandalika project (Strategic Goverment Initiative)
- Affordable Land Prices: While land prices in Lombok are on the rise, they are still relatively lower compared to Bali, providing investors with the opportunity to purchase land at more affordable rates.
- High Tourist Demand: Lombok has rapidly grown as a popular tourist destination, which drives demand for real estate, including hotels, villas, and vacation homes.
- Stability and Growth: Indonesia’s real estate market, especially in Lombok, has shown consistent growth over the years. With increasing infrastructure development and an expanding tourist market, the potential for capital appreciation is high.
- Legal Framework for Foreign Investment: While foreigners cannot own freehold land in Indonesia, there are legal pathways to secure land rights, such as the Right to Build (Hak Guna Bangunan – HGB). This allows foreigners to lease land for up to 30 years, with the possibility of extensions, providing a secure way to invest in Lombok.
One example of an ITDC project plan, as shown in the image below, illustrates the detailed approach taken for the development and execution of key initiatives.
Ivesting in land in Lombok offers a combination of affordability, growth potential, and access to one of Indonesia’s most promising tourism regions, making it a wise choice for foreign buyers.
