Not many tourists knew about Lombok about 10 years ago but lately, things have changed since the launch of a new international airport a decade ago welcoming huge tourist masses which contribute to an increasing number of hotel rooms and developments on the island.

If you are interested in buying land in Lombok or buying a property in Lombok check out the other posts you might like.

 

CURRENT CONTEXT IN LOMBOK

Examples of two big development projects that will definitely also boost confidence levels of international and national investors in the following years are: 

Mandalika Resort Project is a government’s ambitious project currently in development on a 1,175-hectare plot of land in the South Lombok in Kuta, creating a similar area to Nusa Dua un Bali that will bolster the local tourism industry. This project will host:

• 12,000 hotel rooms, well brand international resorts.
• 350,000-square-meter commercial space for shops and restaurants.
• 78-berth marina, a water park, eco-park.
• 120-hectare theme parks are also planned.

 

The street circuit complex that will host the MotoGP in 2021 (or was supposed to before COVID times).

• That it will bring 150,000 spectators to Lombok, which means, there is a lot of work mostly for the government to adopt the island to this world-class event in order to be able to provide enough facilities for the people attending to it.
• The complex consists of a 4.32-kilometer racetrack.
• A total US$1-billion deal for a 15-year development.
• The Indonesia Tourism Development Corporation (ITDC) and France’s Vinci Construction Grand Projects are the companies responsible for the build of the race track, facilities, and the foundation and underground utility system.

 

Best TIPS for invest and develop in Lombok

If you have read our previous blogs such as BUY PROPERTY IN LOMBOK and BUY LAND IN LOMBOK, you are already aware that investing in Lombok is not always an easy process. There are also some “non-written” rules that you should consider when starting a business or develop a project in Lombok, particularly if you are a foreigner investing in an emerging market.

What should foreign investors be aware of when investing in Lombok?

• Avoid conflicts: Usually, if there is a conflict it means that your project will increase costs or lead to delays. This is something you should bear in mind before starting a project. If you are aware of that you will be able to flow with the natural rhythm of the project.
• Control your temper: This means not getting angry with people, don’t be disrespectful, not fights, not lose your manners. Do your best to preserve harmony and peace during the project development.
• Work on your patience: Whatever you do, the project will probably never move as fast as you want or expect to. Patience is something you need to work on starting on day 1 if you want to deal with Lombok locals and don’t lose your mind during the way.
• Be humble: Don’t forget that person-to-person relationships are stronger and you will achieve more by having a Humber attitude with the person working for and with you.
• Adapt yourself to local culture: In Indonesia, religion and community are two important customs in daily life. So you should know that even in most of the cases work ethic is very low, family and community are their main fundamentals that also influence to work.

The importance of contributing to the community

Adapting yourself to the local culture is a crucial part of succeeding in your business development in Lombok. But apart from understanding it, foreign entrepreneurs are also strongly advised to give back to the community surrounding their project. Remember that most of the local people are fishermen or farmers and have never been exposed to a fast-growing business, and for them would be incomprehensible not to give back to the community. The stronger and better your contribution is the more positive impact and support you will get from the community.

How do contribute to the local community?

Apart from following every point of our guide about everything foreign investors should do when investing in Lombok, a great way to build strong ties with your community is by generating employment opportunities, as this would be seen as opening your doors to the local community. This task will not always be easy, and foreigners will need to face the challenge of choosing well-trained and reliable people to work.

 

At Oceano Development took us long time to really understand the importance of the main keys to succeed in your project investment in Lombok. And this expertise on the ground after more than a decade living in Lombok will give you the support and advise you need in order to make the right decisions in the right time and the right way.

 

Evolution of Lombok property prices

• 2016 Lombok welcomed more than 3 million visitors and since then experienced growth of more than 20 percent year over year.
• 2017 Indonesia President Joko Widodo included Lombok on his list of ten destinations within Indonesia that would be the next hot-spots for international travelers coming to Indonesia.
• Jokowi administration and tourism ministry have supported efforts by pledging over $65 million, targeting the island’s potential for hosting large-scale events and conferences.
• At the same time, foreign investment is also flowing in, with major developments to bring much-needed infrastructure and services to the island.
• According to Tourism Solutions International, Lombok’s hotel supply is expected to jump to more than 4,500 rooms by 2022, supported by continued growth in visitor arrivals that come along with endless opportunities for investments for real estate and developments.

 

Facts about the Real Estate market in Lombok

Indonesia has very strict rules about property investment and foreign land ownership. Anyone wanting to buy land in Lombok now, should enquire with Oceano Development and check our proves post to complete information about how to invest in Lombok.

Lombok is a hidden gem with limitless possibilities that offer favorable conditions for investment returns.

All property investors have their own reasons for investing in Lombok. Some want to build hotels, resorts, spas, and villas; but the main of it is that it will proceed Stelar internment return over time.

Even though the earthquake and now the COVID situation might have changed some trends and can make holiday property investment seen risky, we keep confident that the will be more demand than ever for Lombok. Both solid rental income and long-term capital appreciation as the tourism sector will slowly start to rebuff, bringing with it the holidaymakers who will keep the property earning industry.

Ready to get your beautiful getaway villa in one of the world’s pristine locations?

 

This document is a GUIDE ONLY. Please contact us directly and we will discuss the best option for you for buying a property in Lombok with our legal team.