BENGALURU, Nov 6 Reuters Indian real estate developer Sobha reported a nearly 22 fall in secondquarter profit on Monday, as higher land purchase costs eclipsed strong demand for luxury apartments in the country.

Consolidated net profit for the Bengalurubased company fell to 149.5 million rupees 1.80 million for three months ended Sept. 30 from 191.5 million rupees a year ago.

Luxury home sales in the country surged 115 yearonyear in the first nine months of 2023, a report by property consulting firm Anarock Group showed, as pentup pandemic demand for larger houses and increasing incomes prompted buyers to eye costlier houses.

Analysts, however, flagged muted launches by regional developers, including Sobha peers Prestige Estate Projects and Brigade Enterprises, in Bengaluru, on the back of delayed approvals.

Sobha had no new launches in the quarter.

A morethan20 surge in real estate sales, helped by steady, though elevated borrowing costs and easing consumer inflation, pushed revenue from operations nearly 11 to 7.41 billion rupees.

However, this was the company39;s lowest revenue growth in five quarters. Sobha also recorded a 14 rise in its total expenses, mainly due to land purchase costs, and that ate into its profit growth.

The company said last quarter that its share of the luxury segment, which counts flats priced at 20 million rupees and above, has increased to 49 from 41 in the quarter ended March 2023.

Revenue in Sobha39;s other segment, contractual and…