Question 1

What is a reserve fund study?

Accepted Answer

A reserve fund study (also called a sinking fund analysis) is a long-term financial projection that calculates how much money a strata building needs to maintain and replace major building components over time.

Question 2

Is a reserve fund study required by RERA?

Accepted Answer

Yes. RERA mandates reserve fund studies for strata properties in Dubai. The study must be conducted by a qualified professional and updated periodically to ensure the building remains financially viable.

Question 3

How often should a reserve fund study be conducted?

Accepted Answer

Review the study periodically and when building condition, costs or planned expenditure change. Confirm the applicable regulatory and management requirements for your building before agreeing the update interval and scope.

Reserve Fund Study / Sinking Fund