Last Updated on March 9, 2025 by Yasmina
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Lombok has emerged as one of Indonesia’s most promising investment destinations, attracting investors looking for high returns, affordability, and long-term growth. With Bali becoming increasingly saturated and expensive, many are shifting their focus to Lombok, where property prices are lower, tourism is rising, and government-backed infrastructure projects are driving rapid development.
But is Lombok really a good investment? Yes—but only if you choose the right sector and strategy.
This guide explains why investing in Lombok makes sense in 2025, covering real estate, tourism, business opportunities, and infrastructure development.
Lombok’s Real Estate Market Offers High ROI & Growth Potential
One of the best investment opportunities in Lombok is real estate, particularly land, villas, and hospitality properties.
Why Real Estate in Lombok Is a Smart Investment
✔ Property prices are still undervalued – Land and villas are far cheaper than Bali but increasing in value.
✔ High rental demand – Tourism is growing, and short-term rental properties see strong occupancy rates.
✔ 8-12% ROI – Well-located rental properties generate higher yields than Bali’s 6-8% average.
✔ Foreign-friendly investment options – Leasehold land, PT PMA structures, and villa developments make investing accessible.
Real Estate Prices in Lombok (2025 Estimates)
| Investment Type | Price Range (USD) | Potential ROI |
|---|---|---|
| Land (per sqm) | $20 – $250 | High appreciation in prime areas |
| 1-Bedroom Villa | $150,000 – $200,000 | 8-12% annual ROI |
| 2-Bedroom Villa | $180,000 – $300,000 | Strong rental income |
| Luxury 3+ Bedroom Villa | $250,000 – $500,000+ | High-end rental market |
💡 Investment Tip: Areas like Kuta, Selong Belanak, and the Gili Islands offer the highest growth potential for property investors.
2. Tourism Growth Is Fueling Business & Hospitality Investment
Tourism in Lombok is experiencing rapid expansion, making it a profitable industry for investment.
📈 Key Tourism Growth Factors:
- Mandalika Project – A $3 billion tourism development including luxury resorts, golf courses, and the MotoGP circuit.
- New International Flights – Direct flights to Australia, Singapore, and key Asian markets are increasing tourist arrivals.
- Eco & Adventure Tourism Boom – Lombok’s natural beauty attracts surfers, hikers, and wellness travelers.
Best Tourism-Related Investments in Lombok
✔ Boutique hotels & resorts – High occupancy rates in prime areas.
✔ Eco-lodges & sustainable stays – Rising demand for nature-focused accommodations.
✔ Beachfront restaurants & bars – Growing foot traffic in tourism hotspots.
✔ Adventure tourism businesses – Surf schools, diving centers, and trekking tours are thriving.
💡 Investment Tip: Short-term rentals and boutique hotels near tourism hubs have high profit margins. great opportunity for businesses in organic farming, coffee production, and export crops like vanilla.
Infrastructure Developments Are Driving Long-Term Growth
One of the biggest reasons Lombok is a safe investment is government-backed infrastructure projects. These developments increase property values, improve accessibility, and boost business opportunities.
🚧 Key Infrastructure Projects in 2025:
✔ Mandalika MotoGP Circuit – Bringing global attention and high-end tourism to Lombok.
✔ Lombok International Airport Expansion – More international flights = more tourists and business.
✔ New highways & roads – Connecting major investment zones like Kuta, Selong Belanak, and Gerupuk.
✔ Luxury resort developments – Big brands like Pullman and Novotel are expanding in Lombok.
💡 Investment Tip: Buying land near these infrastructure projects can lead to rapid appreciation.
Business & Startup Opportunities Are Expanding
Lombok isn’t just about real estate—it’s also a great place to start or expand a business.
Best Business Sectors for Investment in Lombok
✔ Hospitality & Tourism – Villas, boutique hotels, and guesthouses see strong demand.
✔ F&B (Food & Beverage) – Beachfront cafés, restaurants, and bars are booming.
✔ Eco-Friendly Ventures – Sustainable tourism, organic farming, and solar energy projects are in demand.
✔ Wellness & Yoga Retreats – Growing trend for health-focused tourism.
💡 Business Tip: Areas like Kuta and Selong Belanak have a strong expat and tourist market, making them ideal for starting new businesses.
Lombok Offers a High Quality of Life for Expats & Retirees
Beyond investment returns, Lombok is an attractive place to live, drawing expats, digital nomads, and retirees looking for a relaxed island lifestyle.
🌴 Why people love living in Lombok:
✔ Lower cost of living than Bali.
✔ Less crowded & more peaceful.
✔ Beautiful beaches, surfing, and nature.
✔ Growing expat community in places like Kuta and Selong Belanak.
💡 Tip: Many investors buy a villa for personal use and rent it out when they’re not in Lombok, generating passive income.
Read our latest blog on the best areas to invest in Lombok for further insights.
Final Verdict: Is Lombok a Good Investment in 2025?
✅ YES! With affordable real estate, booming tourism, and government-backed infrastructure projects, Lombok is one of Indonesia’s most promising investment markets.
Why Lombok Is a Smart Investment:
✔ Lower property prices than Bali, with strong appreciation potential.
✔ Growing tourism industry, increasing rental demand.
✔ High ROI (8-12%) on well-located villas and hospitality businesses.
✔ Government support for development & infrastructure improvements.
✔ Foreign-friendly investment pathways, including leasehold and PT PMA structures.
For investors looking for better returns, lower costs, and long-term growth, Lombok is one of the best places to invest in Indonesia right now.
Frequently Asked Questions on is Lombok a good investment?
Is Lombok better than Bali for investments?
Lombok offers lower entry costs and higher growth potential, but Bali has better infrastructure and a more established market.
What is the average ROI for Lombok properties?
Rental properties in prime locations can yield 8-12% annually, depending on demand and location.
Are there risks in investing in Lombok?
Yes, risks include legal restrictions, underdeveloped infrastructure, and market competition. Proper planning can mitigate these risks.
How do I start investing in Lombok?
Begin with thorough research, hire a local legal advisor, and explore areas like Kuta or Selong Belanak for high-growth opportunities.
Conclusion
So, is Lombok a good investment? Absolutely—but like any real estate investment, it requires careful planning and due diligence. Whether you’re interested in real estate, tourism businesses, or agriculture, Lombok offers unique opportunities with high growth potential.
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!
