Lombok vs. Bali: where to invest in Indonesian real estate?

Bali’s popularity is undeniable. The island has good infrastructure, a solid tourism industry, and is known around the world as a top travel destination. Areas such as Canggu, Uluwatu and Seminyak are booming with luxury villas, resorts and beach clubs that guarantee ‘high’ rental returns. Investors in Bali can take advantage of a mature short-term rental market with constant tourist demand, particularly in locations close to the beach or nightlife hotspots.

However, the flip side of Bali’s popularity is market saturation. Property prices have escalated and competition is fierce. If you enter the market now, it can be difficult to find affordable land or property, especially in highly developed areas. Bali cannot expand forever, while construction continues at a rapid pace, the hard truth is that many homes sit empty. Finally, the influx of tourists brings with it the disadvantages of over-tourism: constant traffic jams and the rising cost of living. This could discourage some visitors in the long-term.

Lombok, on the other hand, offers a different kind of opportunity. Often called “the Bali of 20 years ago”, Lombok is still in the early stages of its tourism boom. The island’s natural beauty has nothing to envy Bali. Its magnificent beaches, incredible surf spots and the famous Mount Rinjani, which dominates the landscape, make it a strong contender.

On top of this, the Indonesian government has decided to seriously invest in Lombok’s infrastructure, with projects such as the Mandalika tourism development, the MotoGP circuit and road network improvements, all of which should encourage positive tourism growth. This government support demonstrates a clear commitment to making Lombok the next big tourism center, making it an attractive prospect for early investors.

One of Lombok’s main advantages is its affordability. Land and property prices are significantly lower than in Bali, meaning investors can acquire larger plots or properties for a fraction of the price. This lower entry point reduces risk and leaves more room for capital appreciation as the island continues to develop.

Although tourist numbers are still lower than in Bali, this is part of Lombok’s charm: travelers looking for a more relaxed, authentic experience are increasingly choosing Lombok over its busier neighbor. With fewer short-term rentals on the market, investors can position themselves as early movers and capture demand as tourism develops.

Of course, investing in an emerging market is not without its challenges. Lombok’s infrastructure, while improving, is still catching up with Bali’s, and the island lacks some of the amenities and facilities that tourists can expect. What’s more, while foreign investors can purchase property through a PT PMA (Foreign-Owned Company), careful attention must be paid to local regulations and land titles. Working with a trusted real estate agency like Maju Properties can help you minimize these risks, ensuring that you do your due diligence and remain in accordance with Indonesian property laws.

Ultimately, the choice between Bali and Lombok comes down to your investment strategy. If you are looking for a stable, high-returns rental in a well-established market and you are willing to pay more for premium locations, Bali could be the way to go. But if you are drawn to the idea of getting in early, securing affordable property, and riding the wave of Lombok’s growth, the potential rewards could be even greater.

Lombok offers the unique opportunity to shape the future of an emerging tourism hotspot, with room for creativity, innovation, and long-term value creation. And with tourism consistently increasing, infrastructure improving, and government support driving development, the island is mean to become one of Southeast Asia’s most exciting real estate markets.

If you are still torn between the two, why not explore both? Diversifying your portfolio with properties in both Bali and Lombok can balance risk and reward, giving you exposure to Bali’s immediate rental returns and Lombok’s long-term appreciation potential. Either way, Indonesia remains a powerhouse for real estate investment and whether you choose Bali, Lombok, or a combination of both, you will be investing in one of the most dynamic property markets in the world.

Ready to explore your options? Maju Properties specializes in helping investors navigate Lombok’s real estate landscape, offering real estate advisory and legal guidances as well as local insights to ensure a secure investment. Reach out today, and let’s turn your investment dreams into ‘realty’.