Investing in Lombok: Top Reasons to Buy a Villa on the Island

Lombok is an island located east of Bali. It shares Bali’s outstanding views and culture but is significantly less crowded. As millions of tourists visit Bali each year, Lombok remains untouched, leaving many attractions and destinations unknown to the general public, increasing the number of properties, such as villa in Lombok.

Besides that, the island is filled with several isolated and calm beaches. Aside from beaches, the beautiful island of Lombok is also home to the majestic Mount Rinjani and spectacular marine life.

Lombok makes the perfect palace for a getaway with the COVID-19 pandemic lasting longer than initially anticipated. Villa in Lombok is designed with space in mind, making it ideal for enjoying while still socially distancing from others.

Lombok has seen increased demand for real estate as more individuals and companies adopt remote working. People begin to put their investments in properties. Obtaining a villa in Lombok is one example. Many people seek to make Lombok their second home for leisure and business.

Lombok has started recovering as travel restrictions come to an end. The island has seen several constructions of high-end villas and boutique rentals. Some other projects that are of high quality are also underway.

Alongside residential buildings, beach clubs, restaurants, and other entertainment centers are also set up around the Kuta area in the South of Lombok. The changes made in the dining scene have been exciting.

Read more: Guide to Invest in Lombok Property for Australians

Why Should You Buy a Villa in Lombok?

The Indonesian government has realized the true potential of Lombok and has started to promote the island through various efforts as the primary tourist attraction of Indonesia. It has started projects like the Mandalika circuit and other promotional activities to attract tourists.

Lombok is just a few hours from Singapore and 30 minutes away from Bali. The country is primarily an emerging middle class with a high demand for hotels, airlines, restaurants, etc.

Many investors have started setting up a villa in Lombok and other real estate infrastructures. The efforts are made using the incredible momentum set up by the recent MotoGP race in March 2022.

1. Lombok Geographic Location

Lombok’s strategic geographical positioning is a remarkable advantage. A mere few hours from Singapore and a short 30-minute hop from Bali, Lombok’s accessibility is second to none. Catering to an emerging middle class with fervent appetites for quality hospitality, this propitious location offers a rich tapestry of opportunities in sectors such as hotels, airlines, restaurants, and beyond.

2. High ROI

Investing in Lombok presents a promising prospect of substantial returns. The island’s appeal is not confined to its pristine shores; it boasts the illustrious MotoGP event, which introduced a staggering 65,000 fresh visitors. Notably, nearly one million domestic and international visitors grace Lombok’s landscapes each year with a clear upward trajectory, laying the foundation for robust economic growth.

3. International Circuit Events

The introduction of the Mandalika circuit has catapulted Lombok onto the global motorsport stage. Hosting the prestigious MotoGP and World Superbike Series consistently, this international circuit is a magnet for motor enthusiasts worldwide. Such high-profile events also pave the way for additional motorsport engagements, bolstering the influx of visitors to the island.

4. Affordable Land Prices

Lombok’s emergence as an international tourist hub is accompanied by a substantial benefit: affordable land prices. This economic advantage paves the way for seamless business operations and investments. Entrepreneurs eyeing the lucrative hospitality sector can capitalize on this affordability, establishing luxurious villas and upscale resorts as their new ventures in the heart of Indonesia.

5. Consistent Development Project

Lombok’s trajectory as one of Indonesia’s Super Priority Destinations underscores the commitment of the government to transform the island into a compelling counterpart to Bali. This dedicated approach has fueled continuous development across infrastructure and human resources, ensuring the island can accommodate the burgeoning international market with utmost finesse.

In essence, investing in a villa in Lombok is an astute decision that harmonizes the island’s natural splendor with its booming potential as a premier tourist destination. The Indonesian government’s backing, strategic positioning, and economic vibrancy cast Lombok as an investment opportunity that’s as alluring as its landscapes are captivating. 

Read more: How do Motorsport Events Attract Foreign Investment?

How to Make a Property Investment in Lombok

Before purchasing a property, such as a villa in Lombok, there are several things that you should take into consideration. The most important is what type of property is most suitable for purchasing.

Purchasing raw land, for example, would require an assessment of the topography to decide if the land itself would have value for further development. On the other hand, a service land or a royal villa Lombok is often an option for those looking to build a site shortly.

It is essential to consider whether the services are already provided with the land and other services to be conducted post-purchase. Completed and independent villas are the most convenient purchase as they take away the hassle of handling and overseeing construction.

However, it is often difficult to maintain the rental opportunities properly. Villas in a managed estate would be the most straightforward alternative for those looking to make a steady income.

It would also be the most rewarding as there is no longer a need to constantly check in on the property. In opting for this, the management or construction agreements are integral in ensuring a proper balance between the rights of various stakeholders.

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How to Start Investing in Lombok Property

There are several notable things to pay attention to when investing in Lombok. The first one is to ensure that you are doing it legally. Indonesian property ownership is tricky in Indonesia, especially for foreigners.

InCorp offers services concerning land property ownership as it is a matter of concern for various investors. It also provides services for company registration, should the property purchased be intended for a business. It would be best to primarily seek assistance from legal experts who understand the land ownership and registration process and who can provide service and conduct due diligence before the purchase.

Lombok is relatively untouched and will continue to flourish. The land availability is ample. Make sure sufficient time and consideration are taken before deciding to purchase.

When making important decisions, dealing with credible and reputable individuals is crucial. To ensure you receive the best help, speaking to several people and considering various aspects of the purchase before making it would be best. This way, mistakes concerning water, drainage, electricity, and others could be well avoided.