South Lombok..... Investor's Paradise!

No one can deny that investment in Lombok has steadily picked up pace over the past few years and, in 2010, there is an air of expectation as the island perches on the brink of its “coming of age”.

For those who live here, the development of Lombok is bittersweet; the knowledge that we can’t keep this paradise to ourselves forever and the certainty that, with so much potential, change is inevitable.

It is true that Lombok has all the ingredients that have made Bali into a world-renowned tourism destination and attracted mass investment from all over the world. Those in the know also acknowledge that, in fact, what Bali possesses, Lombok surpasses.

Long stretches of blindingly white sand beaches; not the black or grey volcanic sands often found around Bali. Pristine clear turquoise waters, with intact reef systems – many of which are yet to be discovered. Tens of tiny coral islands laying minutes off shore on every coast around the island; some are uninhabited, most undeveloped. A towering mountain range in the north clothed in verdant jungle and forest, capped by a stunning volcano that attracts thousands of visitors every year. Rolling hills in the south, dotted with tiny villages, covered in greenery, overlooking impossibly white beaches and blue seas.

These and many more reasons are why investors are turning their sights away from the overcrowded warrens of Bali and feasting their weary eyes on the stunning natural beauty of Lombok.

Nowhere is this intense interest more focused than on the south coast of Lombok, where local villages have enjoyed the exclusivity of this breathtaking environment for generations. Kuta, which is the main resort area on the south coast, is a small town boasting a limited range of accommodations and facilities that have, until now, catered mainly to backpackers and the thousands of surfers who flock here every year.

Those who do visit are amazed that the area is so undeveloped. Peaceful bays, stunning beaches, and idyllic vistas stretch along the entire coastline here, with hardly a building in sight. Anywhere else in the world, these beaches would be lined with resorts and high rise developments.

And of course, with so much potential and with the Lombok International Airport due to open within the next year, the south coast is set to transform the most dramatically over the next few years.

Already international investors are submitting “expressions of interest” to the Lombok government for mega-developments and Exotiq Real Estate, the premier real estate agency for the area, is inundated with investors looking to get in now before the landslide becomes an avalanche.

Exotiq Real Estate is the only western owned real estate office in south Lombok and is part of the successful Exotiq Real Estate franchise, which won the CNBC Best Real Estate Property award for Indonesia in both 2009 and 2010. Owner-operators Belinda and Neil are originally from Australia where Neil ran a successful real estate agency for over ten years and Belinda worked in the tourism and hospitality industries for over 14 years, before forming her own business. Both now live in Kuta, surrounded by the beauty of the area they know so well.

Neil first fell in love with Kuta in the mid 1980’s, when he first visited the area to surf. His passion for his surfboard, as well as the area he now calls home, continues to grow.

“In the past two years, we’ve seen investment properties rise between 100 to 200% in value and they’re still going up. Big developers are moving in and buying very large holdings of land for hotel and resort properties,” he said.
This is inevitable, as the Novotel Lombok Resort is the only major resort in the area and currently has a monopoly on the market seeking luxury accommodation in south Lombok. With the new international airport about to open, only 20 minutes drive from here, this area is going to need to expand… and quickly!

Not only will thousands of tourists be arriving, delivered virtually to Kuta’s doorstep, but accommodation is also needed for those investors who are currently building their mega-resorts.

While many will lament this rapid development, there is little risk that the area will be ruined, as has happened in parts of Bali. The south coast is just too long, with almost 100km of empty and desirable coastal land and thousands of hectares of hillsides; it could easily hold a hundred resorts without becoming crowded. Not only that, but anyone seeing the natural splendour of the beaches would quickly realise that these are assets to be preserved.

Neil also acknowledges that many small investors are snapping up blocks to build their private homes and villas, before the big developers take over.

“We’re seeing many personal investors, buying lifestyle properties for their families near the beaches,” he said, “They know that land values are soaring, so they’re getting in now to buy their little piece of paradise.” [the lombok guide]