This study has assessed the neighborhood indicators of Addis Ababa condominium housingrnprogram to encourage the use of physical proximity and disparity for sustainable urbanrndevelopment. Neighborhood indicators are quantitative measures of neighborhood quality,rnincluding measures of attributes such as crime, noise, proximity to parks, transit services,rnsocial capital, and student performance. However, condominium housing neighborhood isrnvery complex and it has multi-dimensional impact, there is an opportunity of physicalrnproximity and a potential of disparity hidden in the society. Thus, the research design usedrnwas a mixed approach; which incorporates both qualitative and quantitative approaches.rnQuestionnaires have been distributed for condominium house inhabitants on a random basisrnby using proportionate sampling method in Jammo, Gofa Mabirat, Gotera, Summit, BolernArabisa and Yeka Abado sites. Personal Interview and discussion was conducted withrnhousing officials from AAHCP office, AAHA, and MUDH. Percentage, mean, tables, andrngraphs were generated using SPSS to analyze and examine the quantitative data.rnFurthermore, group discussions were made with the residents and LDP document analyzedrnand elaborated qualitatively. Although the program has introduced new way of housing forrnthe society that has never imagined, the result of this survey shows that the low level ofrnneighborhood quality is affecting the day to day life of the residents. According to thernsurvey results, there is very weak social cohesiveness that results in different social costs;rnpoor safety and security level that exposed inhabitants to different crimes, disturbance,rndrugs and immoral practice. On other hand, there is poorly developed neighborhood withrnrespect to open space and recreational centers like children playground and youth centerrnand also shortage of social service centers in nearby like health centers and schools thatrnaffect the future human capital development. In addition, there is low level of infrastructurerninvestments, poor linkage with employment centers and industries that affecting thernwellbeing of the inhabitants. In general the idea of condominium houses is noble but thernimplementation has many problems. Therefore, this study can be used as a reference onrnfuture condominium projects to improve the neighborhood quality for sustainable urbanrndevelopment.