Last Updated on March 15, 2025 by Yasmina

Lombok is quickly becoming one of Indonesia’s most attractive real estate markets, offering affordable land prices, stunning landscapes, and high investment potential. Many investors are looking at undeveloped land as a way to enter the market at a lower cost and maximize returns over time.

But is buying raw land in Lombok a smart investment? The answer is yes—if you do it right.

While undeveloped land offers huge upside potential, it also comes with risks, legal complexities, and infrastructure challenges. This guide will walk you through the opportunities, risks, and must-know factors before buying land in Lombok.

1. Why Invest in Undeveloped Land in Lombok?

Undeveloped land offers low entry costs and high future appreciation, making it one of the best long-term investments in Lombok.

🔹 Top Benefits of Buying Land in Lombok

✔ Lower Prices – Buying land is significantly cheaper than developed properties.
✔ High Appreciation Potential – Land near Kuta, Selong Belanak, and Tampah Hills is increasing in value.
✔ Flexible Investment – Develop a villa, sell at a profit, or hold for future gains.
✔ Tourism Growth – The government’s Mandalika Project is driving demand for hotels, resorts, and vacation rentals.

💡 Example: A plot of land 500m from the beach in Selong Belanak that cost $30 per sqm in 2020 is now selling for $100+ per sqm.

2. Best Locations to Buy Undeveloped Land in Lombok

If you’re considering buying raw land, choosing the right location is essential. Here are the best areas for land investment in Lombok:

Location	Best For	Current Land Prices (per sqm)
Kuta	Villa development, rentals	$80 – $250
Selong Belanak	Luxury beachfront villas	$100 – $300
Tampah Hills	Exclusive high-end investments	$120 – $400
Gerupuk & Are Guling	Surf tourism, eco-lodges	$50 – $150
Gili Islands	Beachfront hotels, diving resorts	$100 – $500
Senggigi	Retirement properties, oceanfront views	$50 – $200

3. Key Factors to Consider Before Buying Undeveloped Land

Unlike developed properties, raw land investments require more due diligence. Here’s what to check before purchasing:

✅ Land Title & Ownership Verification

• Check the land certificate (SHM, HGB, or Hak Pakai).
• Ensure the seller has legal ownership and no disputes.
• Verify land boundaries with a local surveyor.

✅ Zoning & Permits

• Some land is zoned for agriculture and cannot be developed.
• Check building height restrictions & tourism development plans.

✅ Infrastructure & Accessibility

• Ensure there is legal road access—some land has no direct entrance.
• Find out if electricity and water connections are available.
• Remote areas may require solar power and deep well drilling.

✅ Flooding & Environmental Risks

• Some areas are prone to flooding during rainy season.
• Avoid buying land in areas at risk of landslides or erosion.

💡 Tip: Always hire a local notary (PPAT) and legal consultant to conduct due diligence before buying land.

4. Risks of Buying Undeveloped Land in Lombok

While land investments can be highly profitable, there are risks to be aware of:

🚨 1. Land Ownership Scams

✔ Some sellers don’t have proper ownership rights.
✔ Fake land certificates are common—always verify with the National Land Agency (BPN).

🚨 2. No Legal Road Access

✔ Some plots don’t have registered road access, making development impossible.
✔ Always check if the land has an official right-of-way (Hak Servituut).

🚨 3. Long-Term Land Holding Costs

✔ If you buy land but don’t develop it, you may still need to pay annual land taxes.
✔ Without development, reselling land can take time unless the area appreciates quickly.

🚨 4. Zoning Restrictions

✔ Some land in Lombok is agricultural-only, meaning you cannot build villas or commercial properties.
✔ Always confirm zoning laws with the local government.

💡 Tip: Never buy land without official due diligence, government verification, and a legally registered notary (PPAT).

5. How to Buy Undeveloped Land in Lombok – Step by Step

Step 1: Choose the Right Location

✔ Visit different areas like Kuta, Selong Belanak, Tampah, and Torok.
✔ Consider road access, tourism potential, and infrastructure.

Step 2: Verify the Land Certificate

✔ Request a copy of the SHM (freehold) or HGB (right to build) title.
✔ Check with BPN (National Land Agency) to verify authenticity.

Step 3: Conduct a Land Survey

✔ Hire a certified land surveyor to confirm boundaries.
✔ Make sure no disputes exist with neighboring properties.

Step 4: Draft a Legal Purchase Agreement

✔ Work with a trusted notary (PPAT) to draft a secure purchase agreement.
✔ Ensure all terms, payment structure, and renewal options are clearly stated.

Step 5: Register the Transaction & Pay Taxes

✔ Pay the BPHTB (land acquisition tax) and registration fees.
✔ Finalize the ownership transfer at the local land office (BPN).

💡 Tip: Never pay 100% upfront—use a structured payment plan tied to official documentation.

6. FAQs About Buying Undeveloped Land in Lombok

1. Can foreigners own land in Lombok?

No, foreigners cannot own freehold land but can invest through leasehold (Hak Sewa) or a PT PMA (foreign-owned company).

2. What is the minimum investment for land in Lombok?

Land prices start at $20 per sqm inland and $100 per sqm beachfront, depending on location.

3. Can I build a villa on any land in Lombok?

No, some land is zoned for forestry only. Always check zoning laws before buying.

4. How long does it take to buy land in Lombok?

The process typically takes 4-6 weeks if all documents are in order.

5. Is buying land in Lombok safe for foreigners?

Yes, if you follow legal ownership structures (leasehold or PT PMA) and verify all documents.

Final Thoughts: Is Buying Undeveloped Land in Lombok a Good Investment?

✅ YES! Lombok offers affordable land, rapid appreciation, and strong future potential.
✅ Best locations: Kuta, Selong Belanak, Tampah Hills, and the Gili Islands.
✅ Foreigners can invest legally via leasehold agreements or PT PMA companies.

Buying land in Lombok can be a smart long-term investment, but due diligence is essential. If you choose the right location, verify all legal documents, and plan for infrastructure development, your investment can yield high returns in the coming years.

Now is the best time to invest—before land prices rise even further!

For more information about buying land in Lombok as a foreigner, read our Complete Guide to Buying Land in Lombok.

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!