The real estate boom which had sent residential property rates sky-rocketing in the city and its suburbs last year has now reached a plateau.

In the last two quarters, Kolkata’s residential market has registered a lower growth rate as compared to the previous year. In 2007, the sale of residential property had registered a growth of nearly 30 to 40 per cent which has dwindled by 10-15 per cent in 2008, claimed a mid-year market review of NK Realtors.

Though the overall sales growth rate has come down, the volume of sales has remained the same. This is because Kolkata is an end-user market and the bulk of the property bought by consumers is for use and not for investment, said experts.

The demand for residential property was mostly in the middle income group segment throughout the last two quarters and the demand for higher income group apartments have slowed down.

“It could be because the latter is seen more as an investment and there is a lot of speculation involved in it. The stock market slump could have had an influence. But the end-user market, mainly reflected by the demand for middle income group apartments, is still going strong,” said Biswadeep Gupta, general manager, Eden Realty Ventures Private Limited.

Premium apartment prices in upcoming suburbs like Rajarhat are stagnant between Rs 2500 and Rs 3,500, which is almost at par with last year’s level. In fact, property prices in New Town have risen by as little as 3 per cent.

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