Lombok, Indonesia
Bali's quiet successor.
Visitor arrivals 2024
3.6M
+51% vs pre-pandemic
STR occupancy (Lombok South)
67%
Airbtics Dec 2025
Villa price appreciation 2024
+20–25%
Reef Property
Market snapshot
The fundamentals at a glance.
Avg nightly rate
$189 / ~€175
Mainland villas
Avg occupancy
67%
Lombok South · Airbtics
RevPARi
~$127 / ~€117
$189 × 67%
Active STR listings
953
Lombok South
Annual STR revenue (median)
$16,792 / ~€15,500
Airbtics Nov 24–Oct 25
Peak season
Jul–Aug
Busiest
Ownership structure
Hak Sewa 25–30 yr
Leasehold
Legal complexity
Converted at 1 USD = 0.92 EUR (June 2026). Sources: Asia Property Awards, Airbtics Dec 2025, Indonesian property law 2025.
Sources: AirDNA, Inside Airbnb, tourism board statistics and local listing platforms. Last updated: Q2 2025. Figures are estimates — always verify before committing capital.
Avg gross yield
9–12%
Before costs, STR let
Entry price range
€120k–€260k
Turnkey 2-bed villa
Occupancy / tourism
67% · +51%
Lombok South · arrivals vs 2019
Lombok now takes overflow demand from Bali with a fraction of its supply: 953 active short-let listings against 3.6M annual visitors, and villa prices up 20–25% in 2024 alone. Entry is still under €150k for a well-located two-bedroom, and leasehold structures are well-trodden. The headline numbers look good — but the real opportunity is in the numbers below.
Full numbers
Yield breakdown, pricing and regulation.
Gross to net yield
| Gross rental yieldAnnual revenue ÷ purchase price | 0.0% |
| Management feeFull-service STR operator | -0.0% |
| Maintenance & utilitiesPool, garden, power, water | -0.0% |
| Property & rental taxLocal rate on gross | -0.0% |
| Vacancy bufferShoulder-season allowance | -0.0% |
| CAPEX reserveFurniture and fabric renewal | -0.0% |
| Net rental yieldAfter all operating lines | 0.0% |
| Cash-on-cash (levered)Indicative, 50% LTV | 0.0% |
Price per sqm
| Prime coastal €/sqmBuilt area, turnkey | €0,000 |
| Secondary inland €/sqmBuilt area, turnkey | €0,000 |
| Land €/sqmServiced plots | €000 |
| Build cost €/sqmMid-spec villa | €0,000 |
| 3-year €/sqm changeBlended | +00% |
ADR & occupancy
| Peak ADRHigh season | €000 |
| Shoulder ADRSpring / autumn | €000 |
| Low ADROff season | €000 |
| Peak occupancyHigh season | 00% |
| Annual occupancyBlended | 00% |
| RevPARADR × occupancy | €000 |
Regulatory notes
- Ownership pathway and the holding structure most non-resident buyers use.
- Short-let licensing regime, registration requirements and renewal cadence.
- Transfer taxes, notary and registration costs on acquisition.
- Rental income tax treatment and applicable double-taxation relief.
- Exit route, capital gains treatment and typical time-to-sale.
Vetted local partners
| Vetted local lawyer | Available to members |
| STR management partner | Available to members |
| Surveyor / valuer | Available to members |
Price history
Land & villa price trend — South Lombok prime areas.
Index, 2020 = 100
Indicative price index — South Lombok prime villa/land segment. Source: Reef Property Lombok (2024, 2025 annual review), Asia Property Awards (May 2025), Nour Estates (2025).
Seasonal performance
Lombok South STR market — 12-month profile.
Monthly distribution modelled from Airbtics annual averages (67% occupancy, $189 ADR) and Airbtics seasonality index. Source: Airbtics Dec 2025, Asia Property Awards May 2025.
Social & investor sentiment
What the market is saying — Lombok.
Traveler reviews and social media give a texture the numbers miss. Below: what visitors are saying, and where the market skews.
Traveler sentiment 2024
86.1%
Positive
Overall: POSITIVE
13,640 positive · 2,206 negative · 15,846 total
Dominant platform: Instagram · Period: 2024
Source: Aspiration Journal Vol.5(2) Nov 2024 — Brand24
Top positive themes
Top negative themes
TripAdvisor signal
321,218+ reviews
- Top experiences: Mount Rinjani, Selong Belanak, Gili snorkeling
- Recurring praise: "Less crowded than Bali", "Friendly locals", "Incredible nature"
- Recurring concern: "Infrastructure still developing", "Limited public transport"
Source: TripAdvisor Lombok destination page, 2026
Luxury media signal
"Lombok ranked Asia's 2nd best island — Condé Nast Traveler 2025"
Luxury travel media recognition of this level historically precedes a 12–24 month surge in premium STR rates. Comparable recognition in early-stage Bali preceded its main appreciation cycle.
| Signal | Implication | Severity |
|---|---|---|
| Waste & cleanliness recurring in social media | Risk to premium STR rates if perception declines | Medium |
| Infrastructure gaps flagged by travelers | Limits luxury guest segment | Medium |
| Off-plan project warnings from local agents | Developer fraud risk — due diligence essential | High |
| Supply surge +42.66% YoY | Rate compression risk in mid-market segment | Medium |
| Condé Nast luxury media coverage | Positive demand signal for premium segment | Positive |
Mellvest monitors investor forums, local agent reports, social platforms, and travel media quarterly. Sentiment data updated: Q2 2026.
Comparison
How Lombok compares — Indonesia STR markets.
| Metric | Lombok SouthThis market | Bali | Gili Islands |
|---|---|---|---|
| Avg nightly rate | $189 | $90 (median) | est. $120 |
| Avg occupancy | 67% | 63% | 48% |
| Active STR listings | 953 | 38,640 | ~890 |
| Annual revenue (median) | $16,792 | $21,000 | est. $12,000 |
| STR supply growth YoY | +42.66% | +23% | — |
| Ownership | Leasehold | Leasehold | Leasehold |
| Legal complexity | Medium | Medium | High |
Bali median ADR $90 reflects full market incl. budget listings; luxury villa segment averages $198+. Sources: Airbtics (Lombok South Dec 2025, Bali Feb 2025–Jan 2026), Nour Estates (Gili 2024), Airbtics Indonesia STR Report 2025.
Sub-markets
Three areas, three theses.
Selong Belanak
Most desirable beach, luxury villa focus, sunset aspect
- Status
- Most active buyer market in South Lombok
- Top 10% nightly rate
- $270+
- Top 25% nightly rate
- $180+
- Best for
- Premium villa buyers, capital appreciation
Source: Reef Property 2025 · AirROI Dec 2025
Kuta Lombok
Most developed tourist hub, strongest rental returns
- Land price
- Rp 160M–400M / 100m²
- Mandalika Circuit
- 20 min
- Driver
- MotoGP event tourism
- Best for
- Villa investment, STR income focus
Source: Nour Estates 2025
Senggigi
Established strip, more affordable, recovering market
- Market share
- 25% of Lombok STR
- Trend
- Softening vs South Lombok
- Entry
- More affordable
- Best for
- Budget entry, mid-range, long-term hold
Source: Asia Property Awards 2025 · Reef Property 2025
Total cost of ownership
$200,000 villa, Kuta / Selong Belanak.
| Cost item | Amount | Notes |
|---|---|---|
| Purchase price | €184,000 | ~$200,000 at June 2026 rate |
| Notary & legal fees | ~€3,700 | ~2% standard Indonesia |
| BPHTB acquisition tax | ~€9,200 | ~5% of transaction value |
| Agent fee | ~€5,500 | ~3% typical Lombok |
| PT PMA setup (if applicable) | €2,750–4,600 | Required for commercial STR |
| PT PMA min paid-up capital | ~€138,000 | IDR 2.5B — BKPM Reg. 5/2025 |
| Furnishing & rental-ready setup | €15,000–20,000 | Mid-range villa estimate |
| Annual property tax (PBB) | €140–370/yr | Among lowest in the region |
| Rental income withholding tax | 20% of gross | Non-resident foreigners |
| Property management fee | 12–15% of revenue | Typical Lombok operators |
PT PMA minimum paid-up capital revised downward by BKPM Regulation No. 5/2025, October 2025. Total investment threshold of IDR 10 billion per business activity still applies. Sources: Global Property Guide Indonesia 2025, Eastern Edge tax guide 2025, BKPM Reg. 5/2025.
Yield calculator
Model your scenario.
Gross yield
25.1%
Net yield
16.1%
Gross annual revenue
$46,220
Net annual revenue
$29,669
Payback period
6.2 yrs
Baseline figures from Airbtics (Dec 2025) and Asia Property Awards (May 2025). Tax rate applies to non-resident foreigners — consult a local tax advisor.
Legal & ownership
The full pathway, step by step.
- 1
Choose your structure (2025/2026)
Three legal routes for foreign buyers:
- Hak Sewa (Leasehold) — 25–30 yr lease in your own name, no nominee. Most common for villa buyers. Renewable but not equivalent to ownership.
- Hak Pakai (Right to Use) — 25 yr, renewable to 80 yr total. Residential use only — not commercial STR. Requires KITAS residency permit.
- PT PMA via HGB — Right to Build 30+20 yr renewable. Required for legal commercial STR. Minimum paid-up capital IDR 2.5B (~€138,000) since BKPM Reg. 5/2025 (Oct 2025). Total investment threshold: IDR 10B per business activity.
⚠️ Nominee arrangements are illegal and unenforceable under Indonesian law.
Sources: BKPM Reg. 5/2025, Paradyse Homes June 2026, ORA Properties 2025, Synergy Pro 2025.
- 2
STR permit
- NIB (business registration) + TDUP (tourism accommodation permit) required.
- Requires PT PMA structure — personal leasehold does not cover commercial STR.
- New April 2026: NIB renewal every 3 years (was lifetime). 12-month grace period for existing operators.
- 3
Tax obligations
- Rental income: 20% withholding on gross (non-residents); reduced by tax treaty depending on country.
- PT PMA corporate rate: 22% on net profit.
- Property tax (PBB): €140–370/yr.
- Purchase tax (BPHTB): 5% of transaction value.
- Sources: Eastern Edge tax guide 2025, Global Property Guide 2025.
- 4
Exit
Leasehold interest is assignable (sellable) to another buyer. Remaining term transfers. Typical exit costs: 2.5–3%. PT PMA allows offshore sale of company shares. Exit liquidity improving but thinner than freehold markets.
Quarterly update
Q2 2026 Market Update
Last updated 1 June 2026
Quarterly subscribers receive this update every 3 months across all covered regions.
- 🟢 NEW
TransNusa launched direct Bali–Lombok Airbus A320 jet service Dec 2025. Replaces turboprops — major comfort and frequency upgrade for the island's most important feeder route.
Source: Eastern Edge, Dec 2025
- 🟢 NEW
Lombok International Airport expansion underway: new terminal + extended runway targeting 7M passengers annually. Direct routes to Perth, Singapore, KL in development.
Source: Discover Lombok, Feb 2026
- 🟢 NEW
PT PMA minimum paid-up capital reduced to IDR 2.5B (~€138,000) under BKPM Regulation No. 5/2025 (Oct 2025). Lowers barrier for foreign investors structuring commercial STR via PT PMA.
Source: Paradyse Homes, June 2026
- 🟢 NEW
Lombok ranked Asia's 2nd best island by Condé Nast Traveler 2025. First major luxury travel media recognition — historically precedes premium rate appreciation and new high-end supply.
Source: Discover Lombok, Oct 2025
- 🟡 UPDATE
STR supply in Lombok South grew +42.66% YoY in 2025 — fastest in Indonesia. Occupancy held at 67% despite surge, showing strong demand absorption. Monitor for rate pressure if supply continues at this pace.
Source: Airbtics Indonesia STR Report 2025
- 🟡 UPDATE
Average nightly rates declined ~21% YoY on Airbnb/Vrbo in 2024 (from $238 to $189), driven by 89% surge in available rentals. Occupancy improved +4pp. Rate recovery depends on supply moderation.
Source: Asia Property Awards, May 2025
- 🔴 WATCH
PT PMA total investment threshold (IDR 10B) means properties below ~€550,000 may not qualify for full commercial PT PMA structure — leasehold remains primary route for most buyers.
Source: Paradyse Homes, June 2026
- 🔴 WATCH
New NIB renewal requirement every 3 years (April 2026). Existing operators have 12-month grace period — ensure compliance before deadline.
Key risks
What to watch.
- STR supply growth +42.66% YoY — rate compression riskMedium
- Foreign ownership complexity — PT PMA IDR 10B thresholdHigh
- Nightly rate decline 21% in 2024 due to supply surgeMedium
- Currency risk — IDR historically volatile vs EURMedium
- NIB permit renewal every 3 years from April 2026Medium
- Off-plan developer fraud risk — due diligence essentialHigh
- Exit liquidity — leasehold resale thinner than freeholdMedium
Listings in Lombok
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Sources & methodology
Data sources — last reviewed June 2026
Mellvest aggregates public STR data, official statistics, field research, and social media monitoring. This is not investment advice.
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Sources & methodology
Data sources — last reviewed June 2026
Mellvest aggregates public STR data, official statistics, field research, and social media monitoring. This is not investment advice.
- Airbtics — Lombok South STR Market Data, Dec 2025airbtics.com
- Airbtics — Indonesia STR Market Report 2025airbtics.com
- Asia Property Awards — Lombok Emerging Landscape, May 2025asiapropertyawards.com
- Reef Property Lombok — 2024 Market Review, Dec 2024reefpropertylombok.com
- Reef Property Lombok — 2025 Market Review, Dec 2025reefpropertylombok.com
- Nour Estates — Land prices & occupancy Lombok 2024–2025nourestates.com
- BPS Statistics Indonesia — Visitor Arrivals 2024bps.go.id
- Discover Lombok — Tourist arrivals surge 51%, April 2026discoverlombok.guide
- Eastern Edge — Indonesia property tax guide 2025easternedge.co
- BKPM Regulation No. 5/2025 — PT PMA capital requirements, Oct 2025
- Paradyse Homes — Foreign ownership cap rules 2026, June 2026paradysehomes.com
- Global Property Guide — Indonesia buying guide 2025globalpropertyguide.com
- Aspiration Journal Vol.5(2) Nov 2024 — Lombok Tourism Sentiment (Brand24)aspiration.id
- TripAdvisor — Lombok destination, 321,218+ reviewstripadvisor.com
- Condé Nast Traveler Readers' Choice Awards 2025, via Discover Lombokdiscoverlombok.guide
- AirROI — Desa Batu Layar Barat STR data Dec 2025airroi.com
The rest of the Lombok data
Full yield breakdown, price per sqm, ADR and occupancy detail, regulatory notes and our vetted local partners.
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