LOMBOK "THE GEM"
In recent years, the Indonesian government has realised Lombok’s huge potential and started to promote the island as one of the country’s primary tourist destinations. Its US$3 billion Mandalika Project promises to be the jewel in the crown, but the provincial government has also been actively introducing tourism projects and promotional activities to attract more visitors.
In the 12-month period before the COVID-19 pandemic grounded international flights around the world, Lombok received a million tourists and recorded 20% year-on-year growth. Arief Yahya, Indonesia’s Minister of Tourism, considers Lombok to have the fastest growing tourism market in the region and development has quickened in recent years courtesy of a new international airport catering to overseas visitors from Australia, Malaysia and Singapore. Various private and government-backed resort projects have opened for business, while more are in the pipeline. Lombok offers a rare chance for investors to buy into a market that is on a steep upward curve, yet remains accessibly priced. And with much of the land largely undeveloped, the only limitation is your imagination.
As one of Asia fastest-growing economies with the fourth largest global population, we see massive real estate potential in Indonesia. A fledgling democracy with a wealth of both natural and human resources, not to mention fantastic cultural diversity and stunning tourism spots, the archipelago is not only more and more open to foreign investment but is also developing at breakneck speed. To handle this new era of demand, we believe that The R Developments is your perfect partner for all your real estate needs in Lombok.
Real Estate Industry
According to Marketline (2018), the Indonesian travel and tourism industry is expected to be $88.5 billion in 2022, with a significant rise of about 38.3% from 2017. In the period 2017-2022, the industry’s compound annual growth rate is projected to hit a 6.7 percent growth rate.
Demand and Taxes
With the relative supply curve in decline, the increase in demand for hospitality buildings will translate into a favorable and lucrative price spike for long-term investors and realtors.Landlords do not have to pay tax because housing lease transactions are currently not regulated in Indonesia, offering attractive investment opportunities.
16 Million Tourists Per Year
Indonesia welcomed more than 16 million tourists in 2019, but more than a third of them almost exclusively visited Bali. The national government is keen to attract tourists to some of it other 17,000 islands and Lombok features prominently on its “10 New Balis” blueprint.
Natural Beauty
Considered one of the five most attractive emerging investment locations in Asia by ‘Property Report’, Lombok is situated between the tourism hotspots of Bali and Komodo Island. Blessed with spectacular natural beauty, Lombok’s beaches are considerably less crowded than its nearby neighbours. Mount Rinjani meanwhile is not only the second highest volcano in Indonesia, but also offers one of the planet’s most spectacular climbs.
Accessible Alternative to Bali
Lombok’s growth is mostly attributable to the island being positioned as an alternative holiday destination to Bali. As its neighbour faces challenges associated to over-tourism, investors are turning to Lombok for more reasonably priced land and property investment opportunities.
Low Entry Prices
While land prices in Bali have jumped in just four years from less than US$300 per square metre to more than $2,000, Lombok is still early in its development process. Prices on the island have increased more than 200 percent in that same four-year period, yet still list for as little as US$230 per square-metre. The opportunities are plentiful.
Untapped Locations
Development was for many years almost exclusively concentrated along the north-western coastline, where Lombok’s most popular destinations are situated: the famous Gili islands of Meno, Air and Trawangan. However, recent years have seen the southern coast witnessing a surge in development with the US$3bn Mandalika Project its showpiece and the international airport in Praya making the coastal city of Kuta suddenly all the more accessible.
Poilitical Stability
Indonesia continues to forge ahead as one of the world’s largest democracies, with very few tensions within the existing political power structures. This ensures politics is unlikely to impede significant reforms and economic growth. President Joko Widodo was elected to office in 2014 and was successfully re-elected in 2019.
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