Last Updated on March 17, 2025 by Yasmina
Lombok Is Changing—Here’s Why You Should Invest Now
There was a time when Bali was an untapped paradise, offering cheap beachfront land and high rental demand. Investors who entered early made massive gains. Now, Lombok is at that same turning point—and those who invest today will be the ones benefiting tomorrow.
Over the past five years, Lombok’s real estate market has grown significantly, fueled by infrastructure projects, booming tourism, and increasing foreign investment. Yet, compared to Bali, property prices remain low, making 2025 the perfect moment for buying a Lombok villa before values increase further.
Whether you’re looking for a vacation home, a profitable rental property, or long-term capital appreciation, buying a villa in Lombok now will position you ahead of the curve.
Table of Contents
1. Property Prices in Lombok Are Rising—But Still Affordable
Villa prices in Lombok are increasing 10-15 percent per year, yet they remain significantly cheaper than in Bali. Investors who wait too long may find themselves priced out of the market.
Current Lombok Villa Prices (2025 Market Data)
| Villa Type | Average Price | Luxury Quality |
|---|---|---|
| 1-Bedroom (80-100 sqm) | $120,000 – $180,000 | $200,000 – $250,000 |
| 2-Bedroom (120-150 sqm) | $180,000 – $250,000 | $250,000 – $400,000 |
| 3-Bedroom (180-250 sqm) | $250,000 – $350,000 | $400,000 – $600,000 |
| 4+ Bedroom (250+ sqm) | $350,000 – $500,000+ | $600,000 – $1,000,000+ |
How Lombok Compares to Bali
- Land in Lombok costs 50-70 percent less than in Bali.
- Villa prices in Lombok are 30-50 percent lower than in similar Balinese locations.
- The average ROI in Lombok is 8-12 percent, often higher than in overdeveloped parts of Bali.
Waiting another two or three years could mean paying significantly higher prices.
2. Government-Backed Development Is Transforming the Island
Unlike many other emerging markets, Lombok’s growth is being actively supported by the Indonesian government. The island has been designated as part of Indonesia’s “10 New Balis” tourism initiative, which means billions of dollars are flowing into infrastructure, tourism, and development projects.
Major Developments Boosting Lombok’s Property Market
- Mandalika Project – A government-funded tourism hub with luxury resorts, an F1-standard MotoGP circuit, and eco-friendly developments.
- Lombok International Airport Expansion – New flight routes and upgraded facilities to support increased tourism.
- New Highways & Roads – Connecting key areas like Kuta, Selong Belanak, and Torok, making property more accessible.
- Luxury Hotel Investments – Major brands like Pullman and Novotel are developing resorts, increasing the demand for high-end villas.
The direct impact? Property values are rising, rental demand is increasing, and land near infrastructure projects is appreciating the fastest.
3. Lombok’s Tourism Boom Is Fueling Rental Demand
Lombok’s tourism industry has grown by 15 percent annually, attracting international visitors, digital nomads, and eco-conscious travelers looking for a quieter alternative to Bali.
For property investors, this means:
- High occupancy rates for vacation rentals
- Increased demand for boutique villas and Airbnb properties
- Luxury and eco-friendly properties commanding premium rental rates
Projected Rental Income for Lombok Villas (2025 Estimates)
| Villa Type | Nightly Rate (USD) | Annual Revenue (USD) | Expected ROI |
|---|---|---|---|
| 1-Bedroom | $100 – $200 | $25,000 – $50,000 | 8-12 percent |
| 2-Bedroom | $150 – $350 | $35,000 – $75,000 | 8-12 percent |
| 3-Bedroom Luxury | $250 – $500+ | $50,000 – $100,000+ | 10-15 percent |
For investors looking to generate passive income, now is the time to enter before rental prices increase further. For more information on Lombok’s tourism growth, visit Indonesia Tourism Development Corporation.
4. Buying a Villa in Lombok? Here are the Best Areas
The location of your villa plays a crucial role in the success of your investment. Here are some of the top areas in Lombok for villa investments:
- Kuta Lombok is the most developed area, offering strong rental returns and property appreciation.
- Selong Belanak & Serangan are a luxury beachfront hotspot, attracting high-end villa developments.
- Tampah Hills is a master-planned eco-luxury community with premium villas and resort-style living.
- Torok is an emerging high-end investment area with stunning beachfront land and growing interest from developers.
- Gerupuk and Are Guling are prime surf destinations, attracting investors looking to tap into Lombok’s adventure tourism market.
- Gili Islands have high rental demand due to strong year-round tourism.
Villas near beaches, tourist hubs, and infrastructure projects see higher resale value and rental income potential.
5. Cost Breakdown: Building vs. Buying a Villa in Lombok
Many investors wonder whether it is cheaper to build or buy a villa. The answer depends on land costs, construction quality, and location.
Buying a Ready-Made Villa
- Faster investment returns – Can be rented out immediately
- Avoids construction delays and permitting hassles
- Higher price per square meter
Average price per sqm: $1,500 – $2,500
Building a Custom Villa
- Lower initial cost if land is purchased affordably
- Full control over design, sustainability, and materials
- Requires permits, contractors, and project management
Average construction cost per sqm: $800 – $2,500
If you purchase land at a good price and manage construction efficiently, building your own villa can save 20-30 percent compared to buying a finished property.
6. What Are the Costs of Owning a Villa in Lombok?
Annual Costs and Taxes
| Expense | Estimated Cost (USD) |
|---|---|
| Land and Building Tax (PBB) | 0.5 percent of assessed property value |
| Villa Management (if rented) | 20-25 percent of rental income |
| Maintenance and Repairs | $3,000 – $10,000 per year |
| Utilities (Electricity and Water) | $100 – $500 per month |
| Staff (Cleaner, Gardener, Security) | $200 – $800 per month |
Lombok has low property taxes compared to many Western countries, making it an attractive long-term investment.
7. Why You Should Act Now
- Property prices are increasing every year
- Government-backed infrastructure is transforming the market
- Lombok’s tourism industry is booming, creating high rental demand
- Villas are still affordable, but this won’t last much longer
Investing now means securing a property at a lower price, benefiting from rising rental demand, and maximizing long-term appreciation.
Lombok’s real estate market is at the perfect stage for investors—still undervalued, but growing fast.
Take the first step toward owning a Lombok villa before it’s too late.
8. Legal Considerations for Foreigners Investing in Lombok Villas
While foreigners cannot directly own freehold land in Indonesia, there are legal ways to invest in property in Lombok:
1. Leasehold Agreement
Foreigners can lease property for up to 80 years, providing them with long-term control over the land. A leasehold is a standard and secure option for foreign investors.
2. PT PMA (Foreign-Owned Company)
For those looking to run a business or manage rental properties, setting up a PT PMA (foreign-owned company) allows for legal property ownership through a business structure.
For more information on foreign property ownership laws, visit the Indonesian Investment Coordinating Board (BKPM).
9. Challenges of Buying a Lombok Villa
While Lombok offers excellent investment opportunities, there are a few challenges to keep in mind:
1. Limited Financing Options
Financing can be challenging for foreign buyers, as most Indonesian banks don’t offer mortgages to foreigners. You may need to rely on personal savings or explore offshore financing options.
2. Legal Complexities
Navigating Indonesian property law can be tricky, especially for foreigners. Working with a trusted local lawyer or notary is essential to ensure your investment complies with the law.
3. Development Delays
While Lombok’s infrastructure is improving, some areas still face delays in development projects. Choosing locations with established infrastructure or where government-backed projects are already underway is important.
FAQs: Buying a Lombok Villa
1. Is it profitable to invest in a villa in Lombok?
Yes, villas in Lombok offer excellent potential for rental income and long-term capital growth, especially in high-demand tourist areas like Kuta and Senggigi.
2. Can foreigners buy villas in Lombok?
Foreigners cannot own freehold land in Lombok, but they can legally acquire property through leasehold agreements, Hak Pakai, or by setting up a PT PMA (foreign-owned company).
3. How much does a villa in Lombok cost?
Villas in Lombok typically cost between $150,000 and $400,000, depending on location, size, and amenities.
4. What are the risks of investing in Lombok villas?
Risks include financing limitations, legal complexities, and potential development delays. Working with a local lawyer and conducting thorough research can help mitigate these risks.
Final Thoughts: Is Buying a Villa in Lombok a Good Investment?
- Affordable villa prices, high rental demand, and strong capital appreciation make Lombok one of Indonesia’s top investment destinations.
- Best locations: Selong Belanak, Kuta Lombok, Tampah Hills, Torok, and the Gili Islands.
- Secure foreign ownership: Leasehold, PT PMA, and Hak Pakai options.
For investors looking for a high-ROI property in an emerging market, Lombok remains one of Southeast Asia’s best opportunities.
Now is the perfect time to invest before prices rise further.
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!
