Analysis of Housing Prices in BRICS Countries: COVID-19 Pandemic Shock

The study analyzed the impact of the COVID-19 pandemic, inflation, and interest rates on the Home Price Index (HPI) in BRICS member countries (Brazil, Russia, India, China, and South Africa), using data from Q1 2016 to Q2 2023. Secondary data used in this study were obtained from official sources, including the International Monetary Fund (IMF), the Central Bureau of Statistics (BPS), and the Central Banks of BRICS countries. The analysis technique in this study uses panel data regression, namely the Fixed Effect Model (FEM). The results of the analysis of the data panel show that COVID-19 has had a significant positive impact on the HPI, indicating that the pandemic has affected the housing market in the BRICS countries. Interest rates have a negative and significant impact on the HPI, suggesting that tighter monetary policy is likely to suppress rising house prices. Finally, inflation has a positive and significant impact on the HPI, illustrating a positive relationship between inflation rates and house prices in BRICS countries. These findings provide insights for policymakers and stakeholders in BRICS countries in managing housing markets and addressing challenges posed by unforeseen events such as the COVID-19 pandemic. In addition, these results also have the potential to support the development of more effective economic policies for the BRICS.