Bali: A More Established Property Market

Bali has evolved far beyond its reputation as a holiday destination. Today, it is a mature international real estate market supported by millions of visitors, established hospitality brands, restaurants, beach clubs, wellness concepts and international schools.

Popular areas such as Canggu, Pererenan and Uluwatu have already experienced significant development. As prices and competition increase in these locations, investors are increasingly looking towards emerging areas where land and property may still offer stronger growth potential.

For investors, success in Bali is becoming less about simply owning property on the island and more about choosing the right micro-location, concept and legal structure. Indonesia’s efforts to attract more international capital also add to the broader investment story. 

Lombok: Earlier in the Growth Cycle

Lombok presents a very different opportunity.

The island remains at an earlier stage of development, supported by an international airport, the Mandalika development, MotoGP circuit, and a growing pipeline of hotels, resorts and villas around Kuta Lombok and the south coast.

Property prices can still be considerably lower than comparable locations in Bali, giving Lombok potentially more room for long-term appreciation.

However, an earlier-stage market also brings greater development and execution risk, making project selection, developer quality and due diligence especially important.

Outlook

The choice between Bali and Lombok ultimately depends on an investor’s strategy.

Bali offers a more established tourism and rental market, while Lombok offers greater early-stage growth potential. Rather than viewing them as competing markets, investors may benefit from understanding both and identifying where future tourism and development demand is likely to move next.

The contents of this article were contributed by Liv Baggen, Head of Global Sales, Juwai IQI; Founder, Homes in Asia.