How Private Graveyards Became a R2.5 Billion Business in South Africa

A quiet revolution is taking place in South Africa’s property market—and it’s happening six feet under. Property developer Calgro M3 has successfully turned a once-niche venture—private graveyards—into a thriving R2.5 billion business, and the numbers are only growing.

While the company is best known for its Integrated Residential Developments, it’s the Memorial Parks division that saw the most impressive growth in the past financial year. Revenue from this segment surged by 41.2%, now accounting for 17% of total group profits, despite a broader slowdown in the housing sector.

From Dead Land to Lucrative Legacy

The concept behind Memorial Parks started in 2017, when Calgro sought new ways to utilize land deemed unsuitable for residential or commercial development. What began as a trial at Nasrec Memorial Park has now expanded into a six-site national operation with over 117,000 burial spaces.

Calgro estimates the total project turnover from its memorial parks could exceed R2.5 billion, with the parks designed not only for high-value burial services but also for indefinite land maintenance—a major selling point for clients seeking a dignified, long-term final resting place. *digitis | Digital marketing for your business

Premium Burial at a Price

These parks cater to a wide range of budgets, from modest plots to multi-grave “diamond estates” priced as high as R500,000. Here’s a snapshot of current offerings:

• Nasrec Memorial Park: From R37,000 or R1,545/month

• Fourways Memorial Park: From R39,000 or R1,625/month

• Enokuthula Memorial Park: From R14,000 or R585/month

• Durbanville Memorial Park: From R29,500 or R1,229/month

• Bloemfontein Memorial Park: From R12,000 or R500/month

The next location, Platinum City Memorial Park, is expected to launch in the second half of 2026, continuing the group’s expansion.

Tapping an Untouched Market

Despite its rapid growth, Calgro believes the private cemetery and cremation market in South Africa remains vastly underdeveloped. The company plans to expand its service portfolio to include more cremation and interment offerings, and add new sections within existing parks to optimise space and pricing.

“There remains significant untapped potential in the market,” Calgro noted in its financial statement.

The goal is to eventually grow annuity income from the Memorial Parks business to fully cover overhead and interest costs across the entire group. For the 2025 financial year, that goal was already achieved.

Residential Business Slows, but Margins Improve

While the Memorial Parks boomed, the rest of Calgro’s operations saw a decline. Group revenue dropped 32.7% to R869 million, and profit fell 15.2% to R166 million. Calgro attributes this to strategic decisions to reduce housing production during political uncertainty ahead of the 2024 elections.

Earnings per share dropped to 171.72 cents, down from 191.10 cents the previous year, with headline earnings following a similar trend.

Yet, even amid these headwinds, gross profit margin climbed to 29.43%, offering a silver lining and underscoring the company’s operational resilience.

With traditional land development facing increasing costs and market pressures, Calgro M3’s venture into private cemeteries highlights how innovation in land use can generate sustainable, long-term value. In a country with limited public cemetery space and growing demand for premium funeral services, the company’s Memorial Parks are not only reshaping the burial industry—they’re rewriting the rules of property investment in South Africa.

{Source: BusinessTech}

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