Despite being often likened to “Bali’s little sister,” Lombok currently experiences relatively low competition as it progresses through its development phase.
Indonesia is renowned for its stunning islands, with Bali being the crown jewel due to its vibrant culture, luxurious resorts, and pristine beaches. However, as Bali’s popularity has soared, so have its real estate prices. In contrast, Lombok, Bali’s neighbor to the east, offers a more affordable alternative for investors and those seeking a piece of paradise without the premium price tag. Additionally, Lombok is increasingly recognized for its superior quality of living in various aspects.
Real Estate Prices in Bali
Seminyak:
Price per are (100 square meters): IDR 5 billion (approximately USD 345,000)
Seminyak is known for its upscale resorts, fine dining, and chic boutiques, making it one of the most expensive areas in Bali.
Canggu:
Price per are (100 square meters): IDR 5 billion (approximately USD 345,000)
Seminyak is known for its upscale resorts, fine dining, and chic boutiques, making it one of the most expensive areas in Bali.
Sanur:
Price per are: IDR 1.5 billion (approximately USD 103,500)
Sanur offers a more relaxed atmosphere compared to Seminyak and Canggu, appealing to families and retirees, which is reflected in its high real estate prices.
Real Estate Prices in Lombok
East Lombok (Direct Beachfront):
Price per are: IDR 75 million to 100 million (approximately USD 5,175 to USD 6,900)
East Lombok is less developed but boasts stunning beaches and a serene environment, offering significant potential for growth as infrastructure improves.
South Lombok (Kuta Beach Frontage):
Price per are: IDR 350 million to 450 million (approximately USD 24,150 to USD 31,050)
South Lombok, particularly around Kuta, is emerging as a prime location for tourism and investment, with its beautiful coastline and increasing number of developments.
Penetap Beachfront:
Price per are: IDR 65 million to 120 million (approximately USD 4,485 to USD 8,280)
Penetap offers a mix of affordability and potential, being slightly more developed than East Lombok but still significantly cheaper than South Lombok.
Analysis and Investment Potential – Price Comparison
Comparing the prices, it is evident that Lombok offers substantially lower real estate prices than Bali.
Seminyak vs. East Lombok:
Seminyak’s price per are is about 50 times higher than East Lombok’s upper range.
Canggu vs. Kuta Beach in Lombok:
Even the high-end of Canggu’s range is more than double the upper range in South Lombok’s Kuta Beach.
Sanur vs. Penetap Beachfront:
Sanur’s price per are is more than ten times higher than Penetap’s upper range.
Investment Considerations
Investing in Bali offers immediate returns due to its established tourism industry, high demand, and robust infrastructure. However, the high entry costs might deter new investors and those looking for more significant capital appreciation.
Investing in Lombok represents a more affordable and potentially lucrative opportunity. The island is on the cusp of development, with new infrastructure projects like the Mandalika tourism project set to boost its appeal. Investors in Lombok can expect higher returns over the long term as the island develops and gains popularity.
Quality of Life in Lombok
In addition to lower real estate prices, Lombok offers a higher quality of living compared to Bali in several ways:
Less Crowded: Lombok is less developed and less crowded than Bali, providing a more tranquil and peaceful living environment. This makes it ideal for those seeking a retreat from the hustle and bustle.
Natural Beauty: Lombok’s natural landscapes, including pristine beaches, lush forests, and majestic mountains like Mount Rinjani, are less commercialized and more preserved, offering better opportunities for outdoor activities and nature appreciation.
Cleaner Environment: With fewer tourists and less development, Lombok experiences less pollution and waste management issues compared to some of the more crowded areas in Bali.
Local Culture: Lombok retains a strong sense of local culture and tradition, which can be a more authentic experience for residents and visitors alike. The Sasak culture is vibrant and integral to the island’s identity.
Cost of Living: Beyond real estate, the overall cost of living in Lombok is generally lower than in Bali, including costs for food, transportation, and services, making it more affordable for both residents and long-term visitors.
Conclusion
While Bali remains a premium destination with correspondingly high real estate prices, Lombok offers a compelling alternative for investors seeking lower entry costs and higher potential returns. Additionally, the quality of life in Lombok is enhanced by its serene environment, natural beauty, cleaner surroundings, and lower overall cost of living. As Lombok continues to develop, it may increasingly attract those looking to invest in Indonesia’s tourism and real estate markets, potentially narrowing the price gap with Bali in the future.
Source: indonesiaexpat.id
