Balwin Properties’ De Aan Zicht Estate in Cape Town. The developer of quality apartments has reported continuing demand from buyers of its apartments in March and April, 2026, in spite of the volatile global geopolitical environment.
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Balwin Properties will continue to develop “good value, well-built, exceptional apartments” through the current volatile inflation and interest rate environment because the demand for housing remains strong, CEO Steve Brookes said yesterday.
Interviewed at the release of the apartment developer’s results for the year to February 28, Brookes said they also plan to grow the group's rental business to 7,000 apartments, and this would act as a hedge on the balance sheet against potential impacts of high inflation and higher interest rates.
“I’ve been through three economic cycles and what I’ve seen is that people still need houses. Also, this country has good banks that will continue to provide home loans. We just need to make sure we remain attentive to what the market needs,” he said in an interview.
In the past year, group revenue increased 21% to R2.7 billion, reflecting the improved conditions in the residential housing market. Revenue growth was driven by a 22% increase in apartment sales to R2.4bn, underpinned by a 17% rise in apartment handovers with 2,053 apartments recognised in revenue (2025: 1,749) and supported by sales price growth.
Profit was up 9% to R254.5 million. Headline earnings per share increased 4% to 47,72 cents per share. Recurring headline earnings per share increased by 41% to 56,44 cents per share.
Brookes said recent global developments had tempered improving economic and consumer sentiment in the local market.
Geopolitical tensions in the Middle East and trade risks had weighed on consumer confidence, with the optimism evident at the start of the calendar year giving way to increased uncertainty.
Positive sales momentum, however, had been maintained, with 1,026 apartments sold in March and April 2026, building on the 1,278 apartments forward sold at the end of the reporting period.
This positioned the group with a strong forward sales pipeline, providing resilience against market conditions while enabling it to capitalise on any improvement in trading conditions.
The group completed its first purpose-built rental development, The Eastlake in Johannesburg East.
The proof of concept for the rental market has delivered the desired outcomes, with a 99% occupancy at year-end. “The demand for these units was just frightening,” said Brookes.
Four new developments for rental had begun, as the group began to expand its rental portfolio “everywhere,” said Brookes.
In total, the group holds investment property valued at R506,9m. In the past year, while economic growth was subdued, moderating inflation and an easing of interest rates had supported consumer demand, improved loan affordability, and stimulated investment in residential property.
Balwin’s results were distorted by the impact of land sale transactions, fair value adjustments to investment property, and a write-off of feasibility costs for an educational facility development that was ultimately deemed misaligned with the group's objectives.
Profit after taxation increased 9% to R254.5m. Excluding the impact of these non-recurring items, group profit increased by 36% and better represents the core business operations.
Brookes said they would continue to sell off non-core investments and use the proceeds to reduce loan-to-value, which fell to 38,1% in the past year from 40.4%.
Balwin Annuity increased revenue by 25% to R219m, maintaining its 8.1% contribution to group revenue.
The group reported a decline in gross margin to 27% (2025: 30%). The gross profit margin from the sale of apartments remained stable at 24%, but the financial impact of the disposal of land parcels impacted the group gross margin performance.
Developments under construction, which comprise the value of land and infrastructure costs, development rights, and construction costs, increased to R6.9bn from R6.7bn.
The cash position was healthy at R208.6m (R254.8m). Cash generation of R198.7m (2025: cash used of R211.5m) recorded a turnaround from improved profitability and disciplined working capital management.
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