The inflation environment is also favorable. While the economy experienced elevated inflation last year, it was fixed through the prompt implementation of monetary and non-monetary actions. BSP raised policy rates by a total of 175 basis points to arrest brewing second-round effects and to anchor inflation expectations.
In Germany, where many people rent for extended periods, a large share of landlords are individuals, however, they do so for retirement purposes rather than capital gains, and are therefore interested in a steady income stream from long-term tenants (see ECB (2009), particularly Box 3). 21  To this end, Budget 2013 introduced Real Estate Investment Trusts (REITs) to Ireland.