1. INTERVIEW
B
oosted by the
healthy and encour-
aging response from
buyers to its previ-
ous projects, Dubai-
based developer Indigo
Properties capitalised on
Cityscape Global to show-
case their next and biggest
so far, the ‘Zen by Indigo’.
Located in Dubai Golf City
and about four minutes away
from Jumeirah Golf Estates,
Zen is to become a lush
green community inspired
from the tropical resorts of
the world.
The project seeks to offer
peaceful and healthy living to
its residents and when com-
pleted, will present serene
views of gurgling streams
meandering past exquisitely-
designed villas.
“Zen was also my personal
idea,” Director and founding
partner Mahesh Tourani told
Gulf Property in an exclusive
interview. “My idea started
with Jumeirah Golf Club. I
was inspired by green living.”
Zen is spread across 4.5
million square feet and will
comprise villas and town-
houses, besides having as-
sociated infrastructure and
amenities.
The project will host 356 vil-
las that will range from 4,000
square feet to 10,000 square
feet, varying in the 3, 4, 5 and
6 bedrooms category. Prices
of residential units in the Zen
start from Dh4.5 million and
can go up to Dh9 million. “We
are charging from Dh1,100
per square feet,” Tourani re-
vealed.
The project will also boast
of retail outlets, clubhouses,
parks, play areas, jogging
tracks, meditation nooks,
pavilions and covered out-
door seating. “The retail units
will be on the outskirts of the
community. It will be man-
aged and rented by us [In-
digo Properties] in a way that
all the needs of the commu-
nity are fulfilled,” he men-
tioned.
Dev Maitra, CEO, Indigo
Properties said, “Our atten-
Indigo to reach its
zenith with Zen
Indigo to reach its
zenith with Zen
An artist’s impression of the villa
with a lake view at Indigo Zen
When it comes to
luxury, even the sky
is not the limit. With
Zen, developer Indigo
Properties takes
luxury to the next
level. Gulf Property
examines the latest
offering that might
change the rules of
the game when it
comes to luxury
living and comfort...
By Indrajit Sen
Senior Reporter
50 Gulf Property

2. INTERVIEW
Gulf Property 51
tion to design and details sets
our projects apart from oth-
ers.
“Our first project, ‘Indigo
Tower’, won an award for
best looking tower in
Jumeirah Lake Towers by the
master developer, DMCC.
Our commercial project ‘In-
digo Central’ has attracted
tenants of the highest calibre
including the likes of ADNIC,
Etihad, Reem Al Bawadi,
Emirates REIT, ADCB and
Canon etc. We are proud of
the fact that we have weath-
ered the economic downturn
during 2008-11 and have
come out stronger.”
Projectontrack
Tourani hopes Indigo Proper-
ties will be able to float ten-
ders for the Zen in November
and award the engineering
contracts in December. Pro-
vided everything falls in
place, he expects the com-
pany to start construction in
Q1 2015 and hand over the
keys to buyers in 2017.
However for developers
getting their projects ap-
proved from the authorities
isn’t a walk in the park now.
With new regulations put in
place and the paperwork be-
coming stringent post-reces-
sion, ‘what used to take four
to five months before, takes
up to a year now’, Tourani
states.
But all seems on track for
Indigo Properties as far as
the official approval for Zen is
concerned.
Tourani said the developer
is through with opening of the
escrow account and other
formalities. With regards to
the crucial step of getting the
OK from the Dubai Municipal-
ity, he confidently reveals,
“We have our sources in the
Municipality who will ensure
that we get the permission
very fast.”
The healthy response In-
digo Properties received for
Zen at launch was an
achievement.
Tourani claims the devel-
oper’s prime strength when it
comes to sales is bulk buy-
ing, and Zen will see a com-
bination of both equity
partnerships and bulk buying.
Several bulk deals were cul-
minated during Cityscape.
Much to Indigo’s delight,
about 20 per cent of units at
Zen were sold out during the
event and myriad enquiries
about the project were made
by genuine investors.
“Buyers were mostly actual
users who knew that they are
going to live in a fantastic
lifestyle, after having looked
around,” Tourani commented.
Thewayforward
When asked about whether
he is planning to develop
property for his company in
places other than Dubai,
Tourani jokes saying, “You
know when people ask me
that I tell them I will build any
emirate of the UAE which
starts with a D!”
In other words he has no con-
crete plans to set foot in other
locations as all of Indigo’s
other projects are in Dubai.
Tourani is warm towards
accepting proposals for Joint
Ventures (JV) and reveals he
has ‘got a lot of offers’. He ex-
plains one particular offer that
came his way during
Cityscape, to Gulf Property
saying, “I have a great offer
for a JV, and I might just take
it up. The building is partially
complete so escrow is not a
problem. They want our
branding. I have to put noth-
ing but my branding, I sell it
and I make money. I can sell
it at Dh1,500 [per square
feet]. So things like that are
coming to us. That’s because
we have passed the test of
Mahesh Tourani, Director
of Indigo Properties
‘I think a bubble is a
very big term which
refers to the whole
property market as
such. However I feel
there are a few bubbles
floating around already.
Downtown Dubai is a
bubble, whereas
Business Bay is not a
bubble. What I feel is
you will have some
downside, some soft
landings. Similarly you
may have appreciation
in areas which are
genuinely good, like I
repeat Business Bay...’
– Mahesh Tourani

3. INTERVIEW
2008 and we are building our
brand.”
He is optimistic about In-
digo’s financial health. With
the kind of solid partnerships
the company has and with
the fantastic proceeds from
sale of the near 20 per cent
units of Zen at Cityscape, the
builder’s costs are covered,
he assures.
Moreover with the number
of investors in the form of eq-
uity partners who are ‘lined
up’ to do business with In-
digo, ‘it is just a matter of a
few days rather months be-
fore our costs are covered.
We are confident of finances’,
Tourani confirmed.
But Tourani concedes it will
take some time before Indigo
comes to be considered as
one of the giants of Dubai’s
property market. According to
him, it is just a matter of peo-
ple’s perception and trust in
the brands.
He elaborates, “When the
actual users start going out,
they have pre-conceived no-
tions about the big master
developers. They don’t mind
signing deals with them be-
cause theirs is a done thing.
Even though I offer a ten
times better product at the
same price, for me they will
think but for them they will
not.”
He seems positive about
Indigo emerging from that
clichéd market opinion
though. “It doesn’t matter be-
cause down the line I will
beat them. If I continue deliv-
ering the way I do it is a mat-
ter of time!”
Hotel of a kind?
Perhaps yes. Considering the
successes of Indigo’s proj-
ects, Tourani aspires to
launch a hotel for the com-
pany’s portfolio.
Eyeing the World Expo
2020 and the associated de-
velopments the idea has
been brewing in his mind for
quite some time. However
he hopes to build a hotel that
would distinguish itself from
most other hotels he comes
across during his travels
abroad.
“When I travel abroad I see
hotels like the Four Seasons
or Banyan Tree, which are
very beige, plain, normal and
all the same. If not that, then
they are very high-class and
ornate and charge you exor-
bitant rates,” he remarks.
Tourani claims of having a
small land bank in inventory
which he intends to utilise to
build that hotel of his liking.
“My plan was to have
something aesthetically dif-
ferent and brilliant, which
doesn’t cost an arm and a
leg. I want to be able to build
a 3-star hotels, but in lieu of
what I charge the guests, I
will offer them services at par
with a 4 and a half-star hotel,”
he states. “I will have my own
management. I will own it,
build it and run it.”
It will be safe to say that the
ball has been set rolling as
far as building the hotel is
concerned.
Tourani reveals he has ap-
plied for permission to build
the hotel.
The project will bear the
branding of Indigo Properties
as a hotel portfolio he admits
will be the way forward for the
company.
He however says that the
project will be a sort of trial
run, and creating a sizeable
hotel portfolio for Indigo will
only depend on the first
hotel’s success.
An artist’s impression of the front
view of a villa in Indigo Zen
52 Gulf Property

4. INTERVIEW
Gulf Property 53
Maturing
market
Mid and low-income groups
in the UAE are expanding
and will continue to expand,
given the steady flow of
expat workers.
With the hype building
around World Expo 2020
and the related economic
progress Dubai is witnessing
in the run up to 2020, the
workforce is all set to grow
manifold. Various sectors are
already on a hiring spree and
hence myriads of expatriate
professionals are arriving in
Dubai each day. These are
people who will naturally in-
vest in low-cost housing proj-
ects. Thus affordable
housing has gained im-
mense importance and pop-
ularity in the UAE, and
builders developing budget
projects have also earned
healthy profits from them.
Considering the changing
dynamics of Dubai property
market, Tourani says the
mid-level property market ‘is
doing pretty well’.
“Earlier the villas with price
starting from Dh8 million
used to do better and the
Dh3 million ones didn’t do
too well. Now the latter’s tak-
ing over. I think even the
general perception is that the
mid-segment is doing pretty
good,” he observes.
In fact he even advises de-
velopers and brokers that
given the current market sce-
nario, earning profits de-
pends on maintaining a
modest yet smart approach.
“I think if one were to be safe
then one must buy and sell
apartments around the
Dh1,500 per square feet
mark. I will rather be comfort-
able in selling in that range
rather than the Dh3,000 per
square feet,” he believes.
There have been rumours
of a second bubble doing the
rounds in the property mar-
ket. Some even go the extent
of stating that Dubai might
witness a repeat of the 2008
economic recession which
virtually left the real estate
sector paralysed. Tourani
doesn’t completely dispel
such beliefs and predictions,
but in fact admits that there
are certain pockets of the
market which need a correc-
tion.
He explains, “I think a bub-
ble is a very big term which
refers to the whole property
market as such. However I
feel there are a few bubbles
floating around already.
Downtown Dubai is a bubble,
whereas Business Bay is not
a bubble. What I feel is you
will have some downside,
some soft landings. Similarly
you may have appreciation
in areas which are genuinely
good, like I repeat Business
Bay.”
In order to avoid another
occurrence of a market
crash, authorities have in-
stalled a system of checks
and balances as well as put
in place several rules and
regulations.
Tourani’s opinion about
them is interesting, “I think
the rules have become
clearer now. Everything was
ad-hoc before. Now the per-
missions have become very
stringent and difficult.”
However, he feels develop-
ers who are recovering from
the bolt of the recession and
working hard to make a mark
for them in the market, are
getting adversely affected by
the legal framework.
He opines, “It is becoming
more difficult as a developer
both ways now; financially
and bureaucratically. And the
margins are lower than what
it used to be earlier. And they
keep on changing.” g
‘The rules have become
clearer now. Everything
was ad-hoc before. Now
the permissions have
become very stringent
and difficult. It is
becoming more difficult
as a developer both
ways now; financially
and bureaucratically.
And the margins are
lower than what it used
to be earlier. And they
keep on changing...’
– Mahesh Tourani
An artist’s impression
of a row of villas in
Indigo Zen
Lake view villas within Indigo Zen