Diversified property developer Calgro M3 says demand for affordable housing in South Africa remains resilient in 2026, driven by urbanisation, population growth and demand from low- to middle-income earners, as the developer maintains a pipeline of more than 30,000 residential opportunities.The trend comes amid growing evidence of an expanding middle class in South Africa, with several studies pointing to rising demand for affordable housing among working households. The middle class is generally defined by monthly earnings of between R8,000 and R30,000, with education levels and urban location among the key determinants of upward mobility, the group said in its annual report. Against this backdrop, the group said it has also been transferring noncore projects at a faster pace, with about 70% of transferred units coming from developments including Scottsdene, La Vie Nouvelle, South Hills Lifestyle Estate, Jabulani and 32-on-Pine, largely within the mid- to high-end segment.“The remaining unserviced pipeline is largely concentrated in its affordable housing project, Bankenveld District City, where Phase 1 bulk infrastructure rollout is currently under way. At present, 1,377 opportunities are under construction, down from 1,543 in 2025, while a further 1,166 serviced opportunities are available for immediate development, compared with 1,833 in the prior year,” the group said. At the same time, the group noted that macroeconomic conditions have continued to improve gradually, with a more stable interest-rate environment and easing inflation offering some relief for affordability. However, high construction costs, rising municipal charges and ongoing cost-of-living pressures continue to weigh on both consumers and businesses.Still, access to credit — particularly for first-time buyers — continues to provide support to the entry-level housing market. This has helped sustain demand in key metropolitan nodes such as Gauteng and the Western Cape, where economic activity and migration trends continue to anchor demand, it said. The group said recent policy direction has leaned more towards public-private partnerships, the release of state-owned land and infrastructure-led development as government looks to speed up delivery. It added that continued investment in infrastructure, aimed at expanding capacity and upgrading existing systems, is expected to be conducive for future development.Meanwhile, the memorial parks segment is experiencing high demand for premium burial spaces driven by a growing preference for private, well-maintained parks.“Significant untapped potential remains in cremations and interments, where Calgro M3 holds a small share. By expanding its offering and targeting these segments, the group aims to grow market share. Continued investment in existing parks will also enhance offerings and support pricing aligned to market trends,” the group said.Business Day