Investors Flowing Back Into South Lombok

Investors have been snapping up good deals lately on Lombok island while tourists slowly come back. The magic ingredients are all there: first major 5 star hotel, new direct international flights and brand names in the industry moving in. To top it off Indonesian economy is doing well.

Indeed 2018 has been a difficult year for emerging markets on the back of US dollar expected rate hikes but it turned out to be a good year for Indonesia with 5.3% growth and higher FX reserves under the leadership of President Jokowi.

In Lombok the aftermath of the triple earthquake last August did bring valuation to a standstill and many investors postponed their visits… until now. We have just experienced a flurry of good deals at attractive levels. Investors have regained confidence in the development rush and their pockets are deeper as a result. US$200k to US500k deals are not uncommon for commercial Kuta, small resorts in Are Guling or high end villas sites in Selong Belanak. Brand names in the industry are moving in such as Pepito, the Bali premium supermarket or they are lurking like Hanging Gardens, the luxury resort in Ubud…

Government decided to double its efforts towards tourism development on the island with ongoing infrastructure build up and full support to the Mandalika on the southern part. That has translated with the removal of illegal mining, the closure of unlicensed businesses but also higher budget for overseas marketing (US$150 million up), the backing of new flights to Perth in February 2019 and soon to Guangzhou (China) and Jeddah (Saudi Arabia) and the construction of the first major 5 star hotel, Pullman, on Mandalika turf, opening by the end of 2019.

Do not hesitate to contact Nagaindo team for the latest investment opportunities. We always stay on top of market trends and accessible to our clients.

Jean-Marc Reynier
Director and Founder

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