Witnessing transactions due to different reasons

Among the most frequently cited reasons given by the sellers of land in the urban areas of Ernakulam district, in a majority of the cases, the sale of land in general was for acquisition of assets such as gold, furniture, equities and shares of leading companies, investing money in fixed deposits in banks, payment of dowry, to generate finances for construction of a new house, financing business and trade, financing employment, financing the education of children etc.  However, the first three reasons constituted over 62 percent of the total area sold in the district. 
 
In the fringe areas and the rural suburbs, the more frequently cited reasons for sale of land was for payment of dowry.  However, in certain localities, finances for the purchase of other landed properties and construction of houses, which constituted 84.7 percent and 77.7 percent respectively of the total transactions taking place in a particular period of time, was financed from the land sold in the fringe and rural areas.  The payment of dowry is the most important reason for sale of land even in these modern times.  The relative importance of this sale pressure varies positively with the increase in distance from the Central Business District (CBD).
 
The relative importance of the different sources of finances show that for all classes of people in Ernakulam, dowry financed about 40.8 percent of the total land purchased, personal savings 34.2 percent, sale of land 6.3 percent, remittances another 8.9 percent, loan from banks 4.4 percent, and money from other bank accounts 5.3 percent.  Location-wise analysis of the sources of the funds for purchase of property showed that personal savings and gifts through dowry were the most important source in the urban, fringe areas of Cochin and the rural areas of the district.
 
Thus in Ernakulam Real Estate transactions are mostly guided by personal reasons than by other factors.  This is greatly evident in the spurt in real estate transactions during the peak marriage season.  In spite of the stringent government restrictions governing real estate transactions, the transactions in the property market are showing no signs of any slowdown because people do not mind any other aspect when they require money to meet their personal needs.

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