Investing in Lombok Real Estate: Naga Indo Investment Limited
With development in Bali reaching a tipping point, more along with also also more investors are looking eastwards to Lombok. Silk Air has recently requested a direct route coming from Perth to Lombok, which means the international world will be taking note of of which travel destination, along with also also more will follow. Living in South Lombok will be Frenchman Jean-Marc Reynier, Founder along with also also CEO of Naga Indo Investment Limited, a land along with also also property investment company. We talk to Jean-Marc about the potential of of which emerging market.
Jean-Marc, how long have you been living in Indonesia?
I left France 15 years ago along with also also I have been living in South Lombok for three years. I came for surfing along with also also to buy a piece of land. I wanted to get away coming from busy Hong Kong where I lived for eight years before Indonesia.
You founded Naga Indo Investment Limited in 2011 as a land development along with also also investment company in an emerging real estate market in Southeast Asia. Tell us why.
I came to Lombok in 2009, along with also also I could see so many opportunities. the item felt like the right time for me to get involved. I also realised of which many investors coming from Hong Kong would likely be interested in owning not just one asset however a portfolio. The idea of investing in an emerging market like Lombok was exciting, so I created a structure to test people’s interest. the item worked out along with also also the item became a full-time job.
What potential do you see from the property development industry in South Lombok in particular?
Lombok has for too long been from the shadow of Bali, just 40km away. However, Bali has reached a tipping point where mass tourism dictates uncontrolled along with also also polluting developments. a few years ago, the Gilis in northwest Lombok started out their boom along with also also currently the item will be spreading across South Lombok. The opening of the international airport along with also also the Government’s commitment to building infrastructures in a more civilised manner offer bright prospects.
What modifications are you seeing from the property market in Lombok along with also also the Gilis?
There has been a very big change over the past few years. Land speculation will be giving way to land development, which means we can see many fresh commercial operations opening, along with also also also servicing along with also also subdividing land or residential building. There are more mid-scale businesses entering the market as well as a few boutique hotels; many coming coming from overcrowded Bali. They bring a certain experience of what should be done along with also also what should be avoided in of which fresh development. of which has attracted much attention coming from expatriates across Asia seeking a holiday home destination at a fraction of Bali’s prices.
Twin Peaks Estate in South Lombok
There are two types of people who invest here: those looking for pure investments along with also also those looking for a family home. Demographics are expatriates living in Asia; 80 percent coming from Hong Kong along with also also Singapore who own a property from the Philippines, Thailand, Vietnam or Indonesia, visiting their dream home once a month on average. Many Australians like the item here, too. Then we see tourists coming from Europe or America who see the item as an investment first however are happy to own a dream villa in a remote paradise destination. Last however not least, we see the growing Indonesian middle class, who will probably become the biggest buyers from the next 10 years as we saw in Bali.
What questions should interested investors ask themselves before purchasing land in Lombok?
I believe the agent/developer/partner you use will be as important as the choice of the land itself. You will need someone you can trust, who will be well connected along with also also skilled to advise you to ensure you can benefit fully coming from your dream land or fresh business. of which works before acquiring the land however the item will be even truer to manage the property along with also also the development afterwards.
Foreign investors may typically be weary of investing in Indonesia for a variety of reasons, especially with the economy as the item will be today. will be Lombok a safe region to invest in?
Emerging markets carry more risk than developed ones however the return goes with the item. Expect a 30 percent net return a year. If you perform with proper due diligence along with also also you possess the right team around you, you will be safe.
What are the positive aspects of investing in property development in Lombok?
A mix of being very authentic along with also also natural along with also also having an international airport close by, which will be quite a special situation, along with also also pure beauty; many people think Lombok will be among the top ten most beautiful places in Asia.
along with also also what about the negative aspects?
We are at an early stage of development; some people say the item will be like Bali 30 years ago. So you have to accept of which not everything will be available; there will be no Carrefour, no Gucci, no car dealers along with also also no Disneyland. However, there will be an international standard hospital along with also also an international school.
President Joko Widodo recently visited South Lombok along with also also announced a newly built office from the region to speed up licensing of all activities from the area. Can you tell us more about of which along with also also what the item means for property developers from the region?
the item means faster processing of paperwork. Indonesia will be full of red tape along with also also regulation; despite being in a very beautiful island, you still have to go through the proper legal set up. Usually a lot has to go through the central office in Jakarta along with also also the item can take a while along with also also slow down your implementation. Thanks to the fresh office from the Mandalika area of South Lombok, of which will accelerate the processes.
What does your company do to ensure of which Lombok will be developed responsibly along with also also sustainably?
Jean Marc at Naga Indo vetiver nursery, Kuta, South Lombok
We minimise the impact of our activities on the surrounding habitat, along with also also we only associate ourselves with suppliers along with also also workers of which respect our commitment. Wherever possible, we will endeavour to utilise natural resources like solar power, collected rain water along with also also recycled waste water when supplying services to sites in our portfolio.
After the servicing of our sites, we make sure we preserve the environment along with also also hedge the soil against erosion by planting vetiver grass. When planted in single rows, vetiver plants will form a hedge which will be very effective in slowing along with also also spreading runoff water, reducing soil erosion, conserving soil moisture along with also also trapping sediment along with also also farm chemicals on site.
We help locals to create fresh businesses by establishing vetiver nurseries ahead of the growing demand coming from developers along with also also builders. Naga Indo has leased land coming from local farmers instead of buying them. We bring know-how coming from experts in Bali, invest from the nursery along with also also assist locals with development. We also offer extra vetiver slips for the most motivated workers to set up their own nursery on their land, showing them of which vetiver nurseries are a viable business, as erosion will be strong in many developing areas along with also also many project managers require green solutions to fight the item. Once the lease expires, we expect the local people to take over the business along with also also feel confident to market along with also also sell the grass to developers along with also also encourage a ‘green living’ environment.
Why do you do what you do?
the item will be my choice of work, which I love, along with also also my choice of life. I always wanted to come back to the countryside because of which’s the kind of place I grew up in. I go surfing from the morning; the item’s peaceful, relaxing along with also also the item reminds me of why I am here. I also like to ride a bike; the item’s much better than generating a car because you feel the wind along with also also hear the sounds of nature.
What challenges do you face working here?
Living in a community will be something fresh to many westerners or city dwellers.
Newcomers like me have to adapt along with also also show respect to the local culture, religion along with also also way of living.
the item will be an effort. Learning how to be patient, for example, will be a hard test for many of us, however the item will be a must.
The different challenge will be to train along with also also retain staff. The level of education will be generally low in Lombok. the item takes a lot of energy along with also also patience to train staff to the required level.
Do you have any plans to leave Indonesia?
No, I have lived in eight different countries along with also also I believe I am ready to settle down. I found my little secret garden.
Comments
Investing in Lombok Real Estate: Naga Indo Investment Limited
Investing in Lombok Real Estate: Naga Indo Investment Limited