Why Kuta, Lombok Is Indonesia’s High-ROI Standout — And How Habitat Villas Is Beating the Market

When investors think “Indonesia property,” Bali often steals the spotlight. But just across the Lombok Strait lies a market with higher growth potential, better yields, and far less competition: Kuta, Lombok.

9/8/20252 min read

With Habitat Villas’ flagship Habitat Forrest achieving 80% occupancy year-round, this is more than just market theory, it’s proven performance.

The momentum behind Kuta, Lombok

1. Mandalika Special Economic Zone (SEZ)
Kuta sits at the heart of Mandalika, a national priority tourism zone with billions invested in roads, utilities, landscaping, and the world-class Mandalika International Street Circuit, home to MotoGP. Each major event injects billions of rupiah into the local economy and spikes accommodation demand. Multiple five star facilities at Tajung Aan within the SEZ have just broken ground and are preparing to be constructed.

2. Growing tourist demand
International arrivals to Indonesia are surging past pre-pandemic levels, with Lombok attracting travelers seeking a less crowded, more authentic alternative to Bali. Domestic tourism is also booming thanks to improved air connectivity and ferry links.

3. Supply gap
While Bali grapples with oversupply and tightening regulations, Kuta’s high-quality villa stock is still limited. Well-positioned, professionally managed properties can secure high occupancy and premium nightly rates.

ROI Snapshot: Lombok vs Other Markets

How Habitat Forrest Changes the Math

Most Lombok ROI examples assume 60–68% occupancy. Habitat Forrest is running at 80% — that’s a +15–20 point advantage.

Let’s calculate using conservative assumptions based on real performance:

Average Daily Rate (ADR): US$160
Occupancy: 80% = 292 nights/year
Gross Room Revenue: 292 × $160 = US$46,720/year
Operating Costs: 35% = US$16,352/year
Net Before Financing: US$30,368/year

If the villa is purchased at US$160,000, that’s a 19% net yield - exceptional for resort real estate. Gross yield on this performance is 29.2%, far above Bali and Gili Islands averages.

Why the Returns are Higher Here

Event-driven demand - MotoGP, surf championships, and cultural festivals push ADR well above normal.
Professional management - Consistent quality means better OTA rankings, higher reviews, and more repeat guests.
Limited competition - Unlike Bali, you’re not competing against thousands of identical villas in the same price band.
Lifestyle factor - Investors enjoy both strong returns and a holiday home in a destination that’s still authentic and relaxed.

Comparing Bali & Gili Islands

two large rocks sticking out of the ocean

BALI

Still Indonesia’s tourism giant, but oversupply, higher operational costs, and new levies are compressing yields. Many villas struggle to maintain more than 65% occupancy annually.

aerial view of green trees and body of water during daytime

GILI ISLANDS

Excellent for boutique stays and dive tourism, but seasonality is sharper, and infrastructure limitations can impact year-round performance.

The Takeaway for Investors

Habitat Forrest’s 80% occupancy isn’t just a good stat—it’s proof of concept. With the same management standards, prime locations, and smart design, Habitat Villas’ upcoming projects in central Kuta have the potential to outperform even Bali’s best villas and offer more stability than the Gili Islands.

For buyers seeking double-digit net returns and a slice of a national tourism growth story, Kuta Lombok—and Habitat Villas in particular—should be at the very top of the shortlist.