The Causes and Consequences of Urban Land Market Failure in Oromia Special zone: the Case of Sululta Town

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To deal with the rapid urbanization the government of Ethiopia has been enacting regulations that mainly focused on restricting informal land transaction. Sululta, is one of the eight towns in Oromia Special Zone which was established in 2008 to restrict the fierce sprawl of Addis Ababa. Unlike all of these actions, the situation worsened and made the market to be dominantly informal and created bad morphological growths in the town. By observing the problem, this study has conducted to explain the major causes and the consequences of the market failure in Sululta town. Research approach of explanatory with survey methods were used in the research. Descriptive statics and analysis with detailed contextual reviews were widely undertaken throughout the research. The result of the study shows that, the major causes of the market failure includes: the inappropriate dominance of some of the actors; the unbalanced socio-economic characteristics of the actors and the illicit nature of the market actors; the poor performance of urban land management system and the ineffective land policies. Accordingly, the result of the explanation of the consequences of the failed urban land market includes: the rise of land price; rapid rate of urbanization; unsuitable settlement patterns; huge consumption of the natural environment and difficulty to implement urban plans are the major effects that are challenging the town. Finally the research recommends the reconsideration of the modalities of land provision with a very effective land management system that can insures the property holding rights of the citizens in order to solve this wide spread tragedy.



urbanization,, urban land,, urban land market,, urban morphology