The overall objective of this study is to assess the challenges and opportunities of slumrnupgrading in Addis Ababa, Arada sub city. A total of 85 households of which 29 were fromrncondominium sites and 56 household respondents from two slum areas were drawn. In eachrnsample households the respondents were chosen to complete the questionnaire. To select slumrnarea respondents this research was used purposive sampling, and systematic random samplingrnwas employed to select households of condominium respondents. Simple descriptive statisticalrntools, such as frequency, percentage, and mean were employed to analyze the quantitative datarngenerated through household survey and qualitative data such as focus group discussion, keyrninformant interview and personal information was implemented mainly to strengthen thernquantitative data. The study indicates that the implementation of slum upgrading changed thernliving condition of the people. One of the major action implemented by the city administration ofrnAddis Ababa to solve the problem of slum is constructing condominium houses. According to thernreport of the Integrated Housing Development Program the aim of the program is to decreasernthe slum area in the city by 50%. This study discovers how it seems like the way of livingrncondition in slum area and condominium sites, by comparing the living standard before andrnafter relocated the slum area. And also try to see the major changes that have come through inrnthe life of the people. According to the report, income lose and decline, community social servicernparticipation are the major challenges. However, the infrastructure and housing service, statusrnof housing facilities and security are the opportunity of slum upgrading. The finding of the studyrnindicates that the upgrading of slum area have a great contribution to change the livingrncondition of the people as well as making conducive living area. The first constructed building ofrncondominium had some difficulties. Building the better kind of houses by improving thernstandards of the houses is a better way to make a preferable living condition. However, further research is needed to assess the overall social, economical, and psychological impacts of slum upgrading challenges faced by the people before and after implementing the program.rnKey words:- condominium, housing facilities, slum upgrading, social communityrnparticipation,