Benchmark Yield Curve
A benchmark yield curve plots interest rates across different maturity periods, indicating market expectations for economic growth and informing real estate financing and valuation decisions.
| Yield Curve Shape | Interpretation |
| Normal (upward sloping) | Longer terms higher rates, healthy economy expected |
| Inverted (downward sloping) | Short rates exceed long rates, recession signal |
| Flat | Short and long rates similar, uncertainty |
| Steep | Large spread, strong growth expected |
| Humped | Medium rates highest, transition period |
| Real Estate Implications | Impact |
| Normal curve | Favorable for development financing |
| Inverted curve | Caution, potential downturn ahead |
| Steep curve | Lock in long-term fixed rates |
| Flat curve | Little advantage to long-term debt |
| UAE context | Tracks US Treasury curve closely due to peg |
| Cap rate relationship | Yield curve influences cap rates, discount rates |
Related Terms
RERA licensed advisors
Free expert advice
Get property recommendations matched to your goals. No pressure. No commitment.