In recent years, Indonesia’s real estate spotlight has begun to shift eastward — from the well-established shores of Bali to the rising star of Labuan Bajo. Once a sleepy fishing town, Labuan Bajo is now being touted as “the new Bali” by both travel enthusiasts and savvy investors alike. But what exactly makes this destination so attractive, and is buying land in Labuan Bajo truly the next big thing in Indonesia land investment?
Let’s take a closer look at what’s fueling the growth and why now may be the perfect time to explore land for sale in Labuan Bajo.
From Fishing Village to Tourism Hotspot
Labuan Bajo, located on the western tip of Flores Island, serves as the main gateway to Komodo National Park — a UNESCO World Heritage Site famous for its dragons, pristine reefs, and stunning island landscapes.
Over the past decade, this town has transformed dramatically:
- Tourist arrivals grew by over 300% between 2014 and 2023.
- Over $1 billion USD in infrastructure investment has flowed into the region as part of Indonesia’s “10 New Balis” initiative.
- The new international airport is set to handle over 1.5 million visitors annually by 2026.
- Labuan Bajo is home to dozens of new luxury resorts, eco-lodges, and high-end developments.
👉 If you’ve read our article on Why Eco-Tourism is Driving the Rise of Land Prices in Sumba, you’ll see a parallel here. Nature-driven tourism is a major catalyst for property growth in Indonesia’s emerging markets.
Why Investors Are Turning Their Eyes to Labuan Bajo
Bali has long set the benchmark for tropical land for sale in Indonesia, but Labuan Bajo offers a new frontier — one that is still affordable and full of promise.
1. Lower Entry Costs, Higher ROI Potential
Compared to Bali, land prices in Labuan Bajo remain 30–60% lower, even in premium coastal zones. This gives investors access to beachfront land for sale or freehold land in Indonesia at a fraction of the cost.
Early-stage investments are already showing significant growth. In key districts like Waecicu and Gorontalo, land values have doubled in the last five years, driven by resort development and improving infrastructure.
2. Indonesia Real Estate Trends Favoring the East
Indonesia’s national tourism strategy is shifting toward lesser-known destinations like Sumba and Flores to reduce pressure on Bali. Labuan Bajo, in particular, has been chosen as a “super-priority tourism zone” by the Indonesian government — meaning preferential zoning, faster permits, and increased marketing support.
3. Strong Rental and Commercial Potential
With increasing tourist arrivals, there’s a growing demand for villas, boutique accommodations, and eco-retreats. Investors are already seeing rental yields ranging from 8–12% annually, particularly in the luxury segment.
Land for Sale in Labuan Bajo: What Are Your Options?
Labuan Bajo offers a variety of land types for different investment goals:
• Beachfront and Cliffside Land
Ideal for resorts, private villas, or wellness retreats. Stunning views of Komodo islands and sunset-facing plots are especially valuable.
• Inland Tropical Land
Cheaper, but still strategically located near infrastructure. Perfect for glamping sites or community-based eco-tourism.
• Development-Ready Plots
Zoned, leveled, and with road access — often located just outside the town center, near Pelataran Marina or the airport road expansion.
🔗 Curious how this compares to Bali’s hotspots? Check out The Best Areas to Buy Land in Bali: A Regional Guide for a comparison of location-based land potential.
Legal Landscape: Buying Land in Labuan Bajo as a Foreigner
As with the rest of Indonesia, foreigners cannot own land directly in their name — but there are legal structures in place to invest securely:
- Leasehold land in Indonesia is the most common option, with long-term leases (25–80 years) renewable and transferable.
- Through a foreign-owned company (PT PMA), investors can access freehold land in Indonesia under corporate ownership.
- Working with a certified notary and legal advisor ensures you follow the correct step-by-step land buying process.
Why Now Is the Right Time
Labuan Bajo is still early in its real estate cycle. According to Indonesia’s Ministry of Tourism, annual visitor numbers are projected to exceed 3 million by 2030 — up from around 300,000 in 2019. This surge is backed by:
- An expanding marina and cruise port.
- Ongoing road and airport expansion projects.
- Growing attention from international hotel brands.
- Government-backed promotion of sustainable tourism.
Investing now means riding the wave early — before land values catch up to more mature destinations.
Comparing Labuan Bajo to Bali and Sumba
| Feature | Labuan Bajo | Bali | Sumba |
| Land Price | $$ | $$$$ | $ |
| Tourist Growth | Rapid | Mature | Emerging |
| ROI Potential | High | Moderate-High | High |
| Legal Access | Leasehold / PT PMA | Leasehold / PT PMA | Leasehold / Customary |
As you can see, Labuan Bajo strikes a balance — it’s more accessible and developed than Sumba, but still has much lower entry costs than Bali.
Final Thoughts: Is Labuan Bajo Right for You?
If you’re looking for:
- An emerging property market in Indonesia
- A region supported by national infrastructure investment
- Beautiful natural surroundings and sustainable development trends
- Room for high ROI land investments
… then Labuan Bajo deserves your attention. From tropical land for sale to beachfront development plots, the opportunities here are real — and growing.
🔗 Before you go, take a look at our articles on Discovering Sumba and Why Bali Remains a Top Destination for Land Investment in 2025 for a broader understanding of where to invest across Indonesia.
Ready to take the next step?
Explore land for sale in Indonesia and discover curated listings from Labuan Bajo, Sumba, Bali, and Rote Island — each with investor insights and legal clarity.