Advantages of Investing in Real Estate in Lombok, Indonesia
Investing in real estate in Lombok, Indonesia, presents a multitude of advantages that make it an attractive option for both local and foreign investors. Below are the key benefits associated with this burgeoning market.
Rapid Development and Infrastructure Growth
Lombok is experiencing significant infrastructural development, which enhances its accessibility and attractiveness as a tourist destination. The construction of the Lombok International Airport and improvements to road networks have made it easier for visitors to reach the island. This growth not only boosts tourism but also increases property values, making investments more lucrative over time.
Growing Tourism Sector
The island’s natural beauty, including pristine beaches and cultural sites, has led to a surge in international tourism. Popular attractions such as the Gili Islands and Kuta Beach draw millions of visitors annually. As tourism continues to grow, so does the demand for hospitality services and real estate investments catering to tourists, creating opportunities for high rental yields.
High Return on Investment (ROI) Potential
Investors can expect strong returns from properties located near tourist hotspots. Vacation rentals are particularly profitable during peak seasons when demand surges. Additionally, as infrastructure develops further, property values are likely to appreciate significantly over time, providing capital gains for investors.
Favorable Legal Framework for Foreign Investors
While there are legal restrictions on direct property ownership by foreigners in Indonesia, various structures allow foreign investment in Lombok’s real estate market effectively. Establishing a PT PMA (Foreign-Owned Company) enables foreigners to acquire land use rights (Hak Pakai) for business purposes such as tourism and rentals. This legal framework provides a viable pathway for foreign investors looking to enter the market. Besides, some developers have set up structures to facilitate the property ownership for foreign purchasers. Our team of exportais can share more details with you, feel free to request a virtual meeting.
Diverse Investment Opportunities
Lombok offers a range of investment options from residential properties to commercial ventures like hotels and resorts. This diversity allows investors to choose projects that align with their financial goals and risk tolerance while benefiting from the growing tourism industry.
Government support
The Indonesian government is determined to make Lombok an enticing tourist destination and is investing massively in the area.
An exemple is the the Mandala racing track which is hosting several global races every year.
Click the image below to watch our video introduction of the Lombok property market:
