Land or Villa: What’s the best investment in Lombok?

For years, Lombok lived in Bali’s shadow. Today, it stands confidently in its own light.

The island is seeing steady growth in tourism, improved accessibility through a modern international airport, and increased interest from foreign investors. Why?

• Land is still affordable, especially in areas like Selong Belanak, Are Guling, and Lancing
• The PT PMA (Foreign Investment Company) structure makes property investment in Indonesia accessible for foreigners
• Lombok retains what many feel Bali has lost; quiet beauty, space to breathe, and untouched beaches

This moment is a rare window, before prices rise, before the island transforms completely.

There’s something deeply personal about land. It’s space, it’s freedom, it’s potential waiting to be shaped.

Buying land in Lombok gives you the opportunity to dream without limits. Whether you plan to build a boutique stay, a minimalist home, or hold it as a long-term investment, land offers a clean slate.

Why consider land:

• Lower price per square meter compared to developed property
• Flexibility: build later, develop slowly, or land-bank for future resale
• High potential for capital appreciation as tourism expands

But land is not a passive investment. It asks for patience, planning, and precision.

You’ll need to understand zoning, obtain permits, and ensure clean land titles like SHM (freehold) or HGB (Right to Build). Development takes time and often benefits from trusted local insight.

If land is a blank canvas, then a villa is a ready-made escape or a revenue-generating asset from day one.

Lombok’s tourism industry is growing fast, and well-located villas near Kuta, Selong Belanak or Tampah are in high demand for short-term rentals.

Why consider a villa:

• Immediate returns with rental yields ranging from 8–12% annually
• Turnkey investment with less complexity than building
• Dual use: personal retreat + profitable rental

Many investors begin with a villa, not just for financial returns but to get a feel for the island before committing deeper. It’s a way to test the waters without diving into construction.

Still, villas require ongoing care. The tropical climate demands regular maintenance, and managing bookings, guests, or staff from abroad can be a challenge.

Let’s break down one of the most common concerns:

Can foreigners own property in Indonesia?

Direct freehold ownership (SHM) is not permitted for non-Indonesians. But there are two legitimate paths:

PT PMA structure

• Set up a foreign-owned company
• Acquire property under an HGB (Right to Build) title
• Ideal for land development or commercial use

Leasehold agreements

• Long-term leases (typically 25–30 years) with extension rights
• Common for villas and personal homes
• Secure when handled with a registered notary and legal review

There’s no single right answer, only the one that fits your goals and your lifestyle.

Choose land if:

• You’re playing the long game
• You want to design from the ground up
• You see value in early-stage areas
• You’re open to being hands-on or have the right partner

Choose a villa if:

• You want passive income now
• You plan to use the property personally
• You prefer a simpler, faster path
• You value ease over construction complexities

Or maybe, you choose both.

Start with a villa to create income flow, then invest in land to hold or build later. This strategy blends immediate ROI with long-term equity growth, offering both stability and potential.

Lombok offers more than investment, it offers the luxury of space, time, and possibility.

With the correct direction, your journey may begin, whether your vision is enjoying sunsets on your private patio, visitors arriving at your cliffside villa, or just owning a piece of an island with a promising future.

At Maju Properties, we do more than help you buy. With deep local knowledge, legal expertise, and a curated portfolio of exclusive listings, we’re your partner from start to finish.

While you concentrate on the vision, we take care of the details. In addition to providing investors with complete legal support, from business setup to due diligence and compliance, our property management service takes care of everything from maintenance to guest check-ins, so your investment stays stress-free and your goal is preserved.

Contact us to make an appointment or view our latest listings.

Your piece of paradise is waiting, let’s make it yours!