Lombok’s emerging landscape: Hospitality-backed real estate on the rise

Shifting foundations of Lombok’s property market

Over the last 20 years, Lombok has undergone a transformation in its real estate sector, primarily driven by the expansion of tourism and the hospitality industry. Initially, foreign developers focused on acquiring raw land, carving it into serviced plots within planned communities, and targeting buyers interested in constructing cost-effective private villas. This phase mirrored early-stage development and attracted speculative investment, particularly when compared to the more saturated markets of South Bali.

A turning point came in 2011 with the debut of Lombok International Airport in Central Lombok, replacing the old Selaparang Airport. Enhanced accessibility spurred tourism and triggered a wave of hospitality-managed residential projects, notably including Selong Selo and BASK Gili Meno. These developments, typically situated along scenic coastlines or beachfronts, found prime locations in areas like the Gili Islands, Senggigi, and Selong Belanak.

More recently, heightened interest from foreign investors—especially those from Singapore, Hong Kong, Europe, and Australia—has propelled land prices upward by 50%–200% in some areas of South Lombok. This escalation has encouraged a pivot toward integrated hospitality-led communities and turnkey villa developments.

As of now, the market comprises 1,326 units across 18 active developments, alongside an additional 798 standalone holiday rental villas. These form the backbone of Lombok’s hospitality-managed residential segment.

Market structure: Serviced land plots still lead

Hospitality-managed real estate offerings in Lombok fall into three main categories: serviced land plots, condominiums, and villas.

Serviced plots remain the most prevalent, with 704 plots across six developments, accounting for 53% of all inventory. Noteworthy large-scale projects in this segment include Samara Lombok and Tampah Hills.

Condominiums make up 28% of current supply, predominantly situated in North Lombok—where hospitality-driven real estate took root pre-2015.

The villa segment rounds out the market with 246 units, or 19% of total supply, spread across nine different developments. These projects cater to both lifestyle-oriented buyers and investors pursuing income-generating assets within managed rental programs.

Geographic focus: South Lombok takes the lead

South Lombok has become the focal point for real estate activity, capturing 61% of total hospitality-managed supply. Key hubs include Kuta and Selong Belanak, areas that have benefitted from infrastructure upgrades like the airport, Mandalika Special Economic Zone, and new lifestyle amenities. Among these are international dining options, retail services, medical clinics, and the Mandalika Intercultural School, which opened in Kuta in 2022.

By contrast, Senggigi accounts for 25% of the market, while the Gili Islands contribute 8%.

Vacation rentals: Rising occupancy, competitive rates

In 2024, villas on mainland Lombok listed on platforms like Airbnb and Vrbo saw an average nightly rate of USD189 with occupancy at 59%—a 4% increase from the previous year. However, the average nightly rate dropped 21% year-over-year from USD238, a decline linked to an 89% surge in available vacation rentals, which increased competition and put pressure on pricing.

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Conversely, the Gili Islands demonstrated stronger resilience. Despite a 28% increase in listings, average nightly rates edged up by 3% to USD178, with occupancy improving slightly to 54%. This indicates relatively stable demand in a growing market.

Mainland travelers tend to stay longer, with average visits lasting 3.5 nights compared to 2.8 nights in the Gili Islands. One- and two-bedroom villas dominate the supply, comprising 47% and 28% of available units, respectively.

Future outlook: Opportunities for branded developments

Unlike Bali, Lombok has not yet seen branded residences associated with major international hospitality chains. While the Meliá Collections Lombok has been announced, no such developments have been completed, leaving room for pioneering developers to introduce professionally managed, globally branded projects. These could offer premium pricing potential and brand-driven quality assurance for investors.

The market is also shifting toward off-plan villas with fixed designs—often priced between USD150,000 and USD350,000—that appeal to buyers seeking convenience and speed in ownership. This trend is particularly visible in Kuta and Selong Belanak.

With growing investor interest, better infrastructure, and changing buyer expectations, Lombok is poised for continued evolution. The next phase will likely be defined by high-quality, professionally managed residences that match global standards while meeting demand for both lifestyle and investment purposes.

About Bill Barnett

Bill Barnett—a globally recognised hospitality, tourism, and real estate advisor—is the founder and managing director of Asia-based C9 Hotelworks and esteemed member of the PropertyGuru Asia Property Awards (Greater Niseko) Judging Panel.

In addition to being a leading consultant, he is a frequent speaker at industry events and conferences.  With over 30 years’ experience in the Asia Pacific region, he has an extensive background in hotel operations, development, and asset management. His past employment highlights include Senior Corporate roles at international hotel chains and publically listed companies. Bill is considered to be one of the foremost industry experts in the hotel residences sector.  To date, Bill is the author of four books on travel, property, and hospitality under the titles of Slave to the Bean, Collective Swag, It Might Get Weird and Last Call. 

For more information, email: [email protected].