Ethiopia is rapidly urbanizing, but the process is irregular and poorly controlled. Land issues are crucial to economic and social development, growth, poverty alleviation, and good governance. The purpose of this article was to look into the capacity of Bahir Dar's urban land administration institutions in terms of land delivery for urban housing development. It also tries to determine the limits of institutional capacity in urban land administration in terms of achieving desired results. The survey found that comprehensive institutional competency is a key tool for addressing urban land delivery challenges. The study investigates the effects of urban land availability on residential housing. It will also provide empirical data on the issue of institutional capacity as a barrier to the preparation and transfer of urban land. The questionnaire (both structured and open-ended) from purposively selected officials offered both primary and secondary data. In Bahir Dar, the implementation of the land leasing law for residential housing is alarmingly low. The city's land institutions lack operational clarity, and the municipality's performance functionality testing in land production and transfer is insufficient. The vast majority of the city's urban land is illegally owned and exploited without the benefit of permission or leasing procedures. As a result, the city urgently needs leaders and professionals who can handle land leasing tasks. The federal and regional governments should enable private and public land ownership, as well as a private-public cooperation structure.
Key Words: Ethiopia, Bahir Dar, Institutional Capacity, Urban Land Lease, Residential Housing
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