The Ultimate Guide to Buying Property in Lombok in 2026

While property returns in Bali have become increasingly competitive, many investors are looking further east to Lombok. In 2026, Lombok’s property market has become more mature and continues to emerge as one of Indonesia’s most attractive destinations for real estate investment.

Driven by both government-backed infrastructure projects and growing private investment, the island is attracting increasing attention from property buyers, developers, and hospitality brands seeking opportunities outside Bali.

This guide explains why investors are looking at Lombok, the property ownership options available to foreigners, the steps involved in purchasing property, and the key costs, visas, and locations to consider before investing.

Why Invest in Lombok Real Estate Right Now?

Several factors continue to support the growth of Lombok’s property market.

Government investment has been concentrated in South Lombok, especially around Kuta Lombok and the Mandalika area. Significant infrastructure development, including the international circuit and tourism projects, has helped position Lombok as an increasingly important destination for both tourism and investment.

New projects are also emerging around Aan Beach, supported by various investment groups and development consortiums. While Bali has recently introduced additional restrictions affecting certain investments, Lombok continues to demonstrate a strong commitment to attracting investors and supporting tourism development.

Private investors have also shown growing interest in the island. While major international brands were once hesitant to enter the market, hotel groups such as Pullman and Novotel, along with other established brands, have already invested in Lombok, with new projects continuing to emerge west of Kuta Lombok.

At the same time, smaller investors are taking advantage of land and property prices that remain lower than those typically found in Bali. Property values have increased significantly in recent years, and some early investors have already seen substantial capital appreciation.

Should You Invest in Lombok in 2026?

Lombok offers a combination of natural attractions, tourism infrastructure, and development potential that continues to attract both visitors and investors.

Located east of Bali, the island benefits from an international airport, international connections to destinations such as Singapore and Malaysia, and multiple daily flights to Jakarta and Bali. Lombok is no longer simply an extension of a Bali holiday itinerary; it has become a destination in its own right.

From Mount Rinjani and its white-sand beaches to luxury villas and surf destinations, Lombok appeals to a wide range of travelers, including surfers, families, adventure seekers, and visitors looking for relaxation.

If you are asking whether Lombok is worth considering as a property investment destination in 2026, the answer for many investors is likely yes. Property prices continue to rise, new hotels are securing prime beachfront locations, and villa developments with ocean views are expanding across the island.

Despite this growth, property prices generally remain lower than in Bali. In many cases, investors can still find a sea-view home for around USD 150,000, whether for retirement, personal use, or short-term rental purposes. For many buyers, this combination of lifestyle appeal and comparatively accessible pricing remains one of Lombok’s strongest advantages.

Can Foreigners Buy Property in Lombok?

Foreigners can legally acquire certain property rights in Lombok, and in some respects, the market offers more flexibility than Bali.

While Bali is largely associated with leasehold transactions, Lombok offers both leasehold and freehold ownership structures, depending on the property type and the applicable legal framework.

Foreign investors generally have four primary options:

• Hak Pakai
• SHMSRS (Strata Title)
• HGB through a PT PMA
• Hak Sewa (Leasehold)

The most suitable structure depends on the investor’s objectives and on whether the property is intended as a personal residence, a holiday home, a rental investment, or a larger commercial development.

Hak Pakai

This title remains the primary legal mechanism by which foreign nationals may hold property in their personal names. It allows foreigners to hold qualifying residential property directly without establishing a PT PMA or relying on nominee arrangements with Indonesian citizens.

SHMSRS

As Lombok develops, more vertical residential projects are emerging, particularly luxury branded residences and high-end condominium developments in areas such as Mandalika and Kuta Lombok.

Several developers now offer foreign investors the opportunity to acquire apartment units either through a PT PMA or, where permitted, under their own name.

SHMSRS stands for Sertifikat Hak Milik atas Satuan Rumah Susun, commonly known as a Strata Title.

Although foreigners cannot own freehold land (Hak Milik) in Indonesia, regulatory changes introduced through the Omnibus Law and Government Regulation No. 18 of 2021 have expanded opportunities for foreign ownership of apartment and condominium units, subject to the applicable requirements and approvals.

For foreigners who prefer owning an apartment in their own name while avoiding the maintenance responsibilities often associated with landed property, SHMSRS can provide a practical ownership structure.

HGB Title

Hak Guna Bangunan (HGB), or the Right to Build, is a highly secure land title that grants the holder the right to construct and own buildings on a specific plot of land in Indonesia.

While individual foreigners cannot hold an HGB title in their personal name, a PT PMA can.

For investors purchasing property in Lombok for commercial purposes, such as developing villas, operating a boutique hotel, or undertaking a land development project, establishing a PT PMA to acquire an HGB title provides a legal structure for holding and operating the asset.

Hak Sewa (Leasehold Property)

Hak Sewa, or leasehold, is a long-term contractual right granted by the Indonesian freehold landowner. Rather than acquiring ownership of the land, the buyer obtains the right to use the property for a specified period under a legally binding agreement.

For many foreign investors and expatriates seeking a holiday home or medium-term investment, leasehold remains one of the most accessible options in Lombok.

The lease agreement itself determines the rights and obligations of each party. Ownership of the land is not transferred; only the contractual rights granted under the lease may be transferred, subject to the terms of the agreement.

Step-by-Step Guide to Purchasing Property in Lombok

Purchasing property in Lombok involves several legal and administrative steps that should be completed carefully to protect the buyer’s interests.

Before beginning the process, one rule is particularly important: never pay a deposit before signing an agreement that clearly outlines the terms of the transaction and specifies whether the deposit is refundable in the event of legal issues.

It is common for sellers to claim that other buyers are waiting and that an immediate deposit is required. While this may occasionally be true, buyers should always complete the necessary legal checks before committing significant funds.

Step 1: Draft an Intention to Purchase or Pre-Sales Agreement

Before moving forward with the transaction, you should draft or request an Intention to Purchase (ITP), also known as a reservation agreement or memorandum of understanding.

This document should clearly define all payment terms, penalties, and construction obligations if you are purchasing an off-plan property. It is important to ensure that your deposit is refundable if legal issues are discovered during due diligence.

Penalties should also be clearly defined from the beginning. This helps avoid unnecessary negotiations later and prevents you from losing valuable time while waiting for due diligence results before deciding whether to proceed with or cancel the transaction.

Step 2: Pay the Deposit Through an Escrow Account

Once you have negotiated and agreed on all terms and conditions, you will typically be asked to pay a deposit.

We strongly recommend that you place this deposit into an escrow account. It helps protect your funds during the due diligence period and allows the deposit to be returned if a legal issue is identified.

At ILA Global Consulting, we can assist you in securing your deposit through an escrow account managed by our notary partner.

As a general rule, you should avoid paying a deposit directly to the seller or property agent before the legal review process has been completed.

Step 3: Due Diligence

Once your deposit has been secured, the seller should provide all relevant documentation so that the due diligence process can begin.

The purpose of due diligence is to ensure that there are no legal issues affecting the property and that it is suitable for your intended use, whether residential or commercial.

Indonesian regulations are becoming increasingly strict, particularly for investors intending to rent out properties.

Before completing a purchase, you should verify whether the property is eligible for activities such as short-term rentals, hospitality operations, or other commercial uses.

A proper due diligence process should include verification of:

• Zonificación
• Tax payments
• Acceso por carretera
• Building permit eligibility (PBG and SLF)
• Commercial licensing requirements
• Ownership status and property boundaries

Step 4: PT PMA Setup

During or immediately after the due diligence process, many foreign investors proceed to incorporate a PT PMA.
Establishing a PT PMA is often necessary for investors seeking to acquire property with an HGB title. It can also provide a suitable legal structure for commercial activities, such as operating villas, short-term rentals, or hospitality businesses.

The PT PMA structure remains one of the most commonly used solutions for foreign investors seeking long-term property investment opportunities in Indonesia.

Step 5: PPJB or Leasehold Agreement

The final stage of the transaction depends on the ownership structure being used.

For freehold-related transactions, the parties will typically sign a PPJB (Perjanjian Pengikatan Jual Beli). Following the signing, the notary will coordinate the registration with the National Land Agency (BPN) and facilitate the transfer.

Depending on the complexity of the transaction, this process may take several months.

For leasehold transactions, the lease agreement becomes the final legal document governing the relationship between the parties. Payment is generally made after signing, at which point the notary releases the executed agreement to both parties.

For off-plan projects, a separate construction agreement is also commonly used and should ideally be negotiated in the earlier stages of the transaction.

The True Cost of Buying Property in Lombok: Fees and Taxes

Beyond the purchase price itself, buyers should also account for several taxes, government fees, and legal costs associated with acquiring property in Lombok.

The exact amount will depend on the type of property, ownership structure, and transaction value. Understanding these costs from the beginning can help investors avoid unexpected expenses during the acquisition process.

Although the standard VAT rate on new properties was historically 11%, recent tax reforms have increased VAT to 12% for certain luxury goods and property transactions. Always ask your real estate agent or developer whether the quoted purchase price is “VAT Inclusive” or “VAT Exclusive” to avoid a massive surprise bill at closing.

The Best Visa Options for Lombok Property Owners

Owning property in Lombok is not always about investment. For many buyers, it is also about spending several weeks or months each year enjoying their villa, apartment, or holiday home.

Indonesia offers several residence permit options depending on the circumstances and long-term plans. In addition to providing the right to stay in Indonesia, certain residence permits may also offer tax advantages. For example, a foreign resident holding a KITAS may be subject to a 10% dividend tax rate, while someone without a KITAS may be subject to a 20% rate.

The most suitable visa option will depend on your investment structure, intended length of stay, and personal objectives in Indonesia.

Top Areas to Buy Property in Lombok

Lombok offers a variety of investment locations, each appealing to different types of buyers and investment strategies.

Kuta Lombok

Kuta Lombok has rapidly developed into the center of the island’s tourism and real estate growth. Located within the Mandalika Special Economic Zone, the area benefits from significant government infrastructure investment, including the international circuit and improved transportation networks.

The area continues to attract investors seeking rental-income opportunities, driven by surfers, tourists, and adventure travelers. With new hotels, beach clubs, restaurants, and commercial developments continuing to emerge, Kuta offers the highest growth potential for those looking to capitalize on Lombok’s rising popularity.

Selong Belanak

For buyers seeking privacy, exclusivity, and a more relaxed environment, Selong Belanak remains one of Lombok’s most desirable locations.

Known for its long white-sand beach and natural scenery, the area has attracted boutique developers, luxury villa projects, and buyers looking for a premium lifestyle.

Properties in Selong Belanak often focus on ocean views, larger plots of land, and a quieter atmosphere compared to more developed tourism centers. It is attractive for luxury holiday homes and high-end rental properties.

Structuring Your Property Investment in Lombok

Lombok is attracting more investors from Indonesia and abroad because its tourism industry is growing, its infrastructure is improving, and property prices remain competitive compared to many areas in Bali.

It is important to choose the right ownership structure, conduct thorough due diligence, and comply with Indonesian property laws before making any purchase.

ILA Global Consulting helps investors with property checks, PT PMA company setup, legal planning, visa options, and real estate deals across Lombok and Indonesia.

Contact ILA Global Consulting to discuss your investment project and ensure your property acquisition is structured correctly from the start.

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