In a jointly owned building, lifts, roofs, pumps and other shared equipment eventually need replacing, and a reserve fund is meant to pay for that over time. ADREC has highlighted that asset replacement funds are frequently underfunded, and that reserve fund studies over five years old must be updated. A thin reserve can mean larger costs passed to owners through future budgets.
Before you buy an apartment in Al Reem Island or Al Raha, ask the community management company for the date of the latest reserve fund study and whether the fund matches what it recommends. If there is a shortfall, ask whether a plan exists to close it. Compare two buildings on this point as well as on their current service charges.
Prepared by Masterpiece Property.
AI-generated illustration, not a photograph of an actual property or project.
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