New market for real estate developers in Lombok

Lombok could be the next destination to consider for real estate investment. However, we don’t recommend that real estate developers immediately purchase large plots of land and build lots of units at once. A more rational strategy is to enter the market gradually, select locations based on actual demand, ensure the project’s legality, and ensure the project’s viability before committing significant capital.

For developers, the question isn’t simply whether land prices in Lombok will increase. The more important question is: Can you acquire land at the right price, build a product that the market needs, and sell it or generate rental income with a healthy margin? Therefore, it is highly recommended to work with a trusted real estate agent in Lombok.

Key indicators	2025	2026	%
Q1 Airport passenger traffic (Lombok International Airport)	504,061 passengers	628,889 passengers	+24.8%
Q1 Hotel occupancy	41.55%	44.57%	+3.02%
Q1 Average length of stay	1.96 days	2.33 days	+18.9%

Sources: Injourney airports, BPS west nusa tenggara, ITDC and hospitality industry reporting. (Q1, January – April)

For property developers in Lombok, the process of searching for a location and purchasing land must follow a clear procedure. This is to ensure that your real estate project in Lombok runs smoothly. Here are some basic things you should consider before finalizing a transaction with the landowner at a notary’s office.

Land conditions and infrastructure:

Don’t only look at photos or videos when considering a plot of land for investment. Visit the site in person to check road access, the surrounding environment, and whether the location aligns with your development plans. For land on a hillside, make sure the slope is suitable for construction. It’s important to check out the surrounding development, road conditions, local activities, and the potential for disputes with the local community.

Land ownership and certificates:

Review the land title deed, registered rights, ownership details, and any recorded encumbrances. Ask a qualified Indonesian notary or PPAT to verify the transaction documents and relevant land records. Additionally, information on the history of land transactions within the community surrounding the property is equally important, as we need to know whether there are any unresolved internal conflicts.

Zoning and permitted use:

Check the zoning of spatial plan (RDTR) and the spatial planning conformity approval (KKPR) for the land you are planning to purchase. Tourism potential does not automatically mean that a plot of land can legally be used for a villa or commercial accommodation.

Aspect	RDTR	KKPR
Full name	Detailed spatial plan	Spatial planning conformity approval
Main purpose	Defines land-use zones and development rules for a specific area.	Confirms whether a planned project complies with applicable spatial planning regulations.
Main focus	Land zoning and permitted uses.	The proposed use of a specific plot of land.
Key question	What can be built or developed in this area?	Is my planned project allowed on this land?
Example	Determines whether an area is designated for tourism, residential, or other uses.	Checks whether a proposed villa or hotel development complies with the applicable zoning rules.
Role in property investment	Helps investors identify suitable locations before purchasing land.	Helps investors confirm spatial planning compliance for their intended development.

Important for property investors in Lombok: RDTR helps you understand the zoning and development rules for a location, while KKPR addresses whether your proposed project complies with those rules. The applicable process may involve Konfirmasi or Persetujuan (PKKPR), depending on the circumstances.

Total acquisition costs:

You should ensure that you create a clear project budget plan. Include taxes, transaction fees, surveys, legal consultations, access improvements, and site preparation in the budget. This is important because many real estate developers run out of funds halfway through their projects. This is caused by budget plans that do not align with the actual progress of the project.

Is Lombok a good market for real estate developers?
This can open up opportunities, particularly in tourism-oriented locations. However, the profitability depends on the land, the project concept, acquisition costs, demand, and legal feasibility.

Which areas in Lombok should developers consider?
Central Kuta, Prabu, Areguling, Mawun, Tampah, Lancing, Selong Belanak, and a number of coastal destinations suitable for real estate projects. The location also depends on the project planning your company will develop.

What is the most important check before buying land?
Verify land rights, boundaries, legal access, zoning, and permitted uses. This review helps confirm whether the proposed project can legally proceed and be built. Working with a trusted real estate agent in Lombok is the best options.

Should developers buy a large parcel immediately?
Not necessarily. Phased acquisition or development can limit initial exposure while the developer tests demand, construction feasibility, and sales performance.

What approvals may be required to build villas?
Depending on the project, requirements may include spatial planning compliance, KKPR, PBG, SLF, environmental approvals, and business licences. Confirm the current requirements with the relevant authorities.

Lombok offers real estate developers opportunities to explore a developing tourism market, but successful projects require more than selecting attractive land. They require a clear product strategy, realistic financial modelling, verified legal rights, suitable infrastructure, and an understanding of local demand.

For real estate developers looking to enter the Lombok market, a measured approach is often better than purchasing a large plot of land and building many units before the project’s viability can be confirmed.

At Maju Properties, we help international investors navigate every stage of their Lombok property journey. Our services include:

• Land sourcing and acquisition.
• Investment consultation.
• Market analysis.
• Due diligence support.
• Development planning.
• Integrated with the trusted legal, licensing, and property management professionals.

Whether you are buying your first investment property or expanding an existing portfolio, our team is ready to help you make informed decisions with confidence. Contact Maju Properties today to explore secure and sustainable investment opportunities in Lombok.

Disclaimer

This article is for general informational purposes only and is based on Maju Properties market knowledge and experience. Regulations and investment requirements in Indonesia may change and vary depending on your specific circumstances. Please contact Maju Properties for the latest information and professional guidance. Follow us on Instagram, and LinkedIn for the latest property and investment updates.