Investing in Lombok – Now is the time.

Lombok has the potential to become one of biggest property gold-rushes in South-East Asia. 

Despite earthquakes, environmental concerns and the economic impact of COVID-19, this pristine Indonesian island represents continues to represent an excellent opportunity for savvy property investors.  Here’s why. 

For decades, Lombok has been an alternative to the crowded beaches of Bali, famous for the Gili Islands, its unique Sasak culture and, of course, the towering Mount Rinjani.  Remoteness and underdevelopment are part of its charm, but they’ve also been a major impediment to mainstream tourism appeal.  

Now, though, Lombok is set to undergo a transformation, and it’s one that will send property prices skyrocketing.  In 2016, Indonesian President Joko Widodo announced his ‘10 New Balis’ plan, under which 10 popular Indonesian regions will be developed into Bali-esque tourist hubs.  

His intentions?  To attract foreign investment and, eventually, a flood of tourism, designed to reinvigorate the Indonesian economy. 

Despite numerous setbacks, including the 2018 Lombok earthquakes, Lombok is slated to receive the benefits of the ‘Mandalika Project’, with government projections estimating 2 million foreign tourists per year once the redevelopment has been completed.  

The economic fallout of COVID-19 has slowed the 10 New Balis, but President Widodo seems determined to push onwards, funneling Rp 9.4 billion into developing Lombok’s 2021 MotoGP circuit even in the face of criticism from tourism chiefs. 

So how exactly will the redevelopment of Lombok benefit independent property investors? 

A number of peer-reviewed studies have indicated there is a strong positive correlation between increased tourism and increased housing prices, which means owners will enjoy a rise in land value, regardless of whether or not they rent out their properties.  

This will, as time goes by, perpetuate a cycle of investment – as developments become more profitable, private and government buyers will invest more money into properties around the Mandalika area, attracting more tourists, which then then makes those same investments even more profitable, leading to an increase in buyers and a subsequent rise in land value. 

It’s a win for investors, and a win for holiday home owners.  Land appreciation and increasing rental rates mean property investments in Lombok have everything they need to produce consistent, long-term returns.  

The traits that have made Lombok so appealing in the past aren’t likely to disappear, either.  Local bodies and conservation groups have raised valid concerns about aspects of the 10 New Balis project, so sustainability safeguards will likely be implemented to preserve both liveability and eco-tourism value. 

Lombok’s exceptional investment potential is reflected in Selo Group’s own expansion plans.  We are currently developing a suite of new facilities and properties around Selong Selo Resort, designed to increase regional attractiveness for tourists and short-term renters.  To supplement our existing accommodation offerings, we’ve begun constructing our Luxury Surf Villas in Selong Belanak Bay, an exclusive resort featuring 20 opulent villas that effortlessly complement their pristine natural surroundings.  

We’re also coordinating with the Indonesian Forestry Department to transform over 100 hectares of land behind Selong Selo Resort into a large-scale ecological park, which will feature walking tracks, picnic spots, refreshment huts, horse and mountain biking trails, dams and rivers, forests and a nursery.  

In addition to increasing revenue for both Selong Selo Resort and Luxury Surf Villas, the eco-park will act as a major attraction for southern Lombok, and is expected to drive up regional land value.    

Beautiful natural attractions, massive government redevelopment, continued investment from local developers – it’s the perfect storm for a sharp spike in both land value and visitor numbers. 

The evidence is clear: Lombok’s future is golden, and now is the perfect opportunity for property investors to get on board early.