Land markets contribute directly to economic growth through capitalrnformation. In this regard, land developers have a crucial role to play, in thatrnthey develop sites generating higher values, making it possible for urban landrnmarkets to contribute significantly to capital formation direction. The mostrnimportant function of land markets in economic growth is moving land from therninefficient user to the more efficient one. The past two decades of publicrnownership of land and centralization of some of the land related activities havernproved the public sector’s inefficiency, sluggishness and bureaucratic landrnallocation that didn’t cope with the fast growing demand of the population, onlyrncontributing to land price escalation and corruption in the city and in thernstudied area.rnThis study establishes that, the practices of access to information about landrnlease and land allocation was not equally accessible to all. Limitedrnpublications or announcement, long and many steps in land allocationrnprocesses were time consuming and non uniformity in managing landrnevidenced this. However, land allocations was mentioned by the majority of anrnindividual or by the city residents as non transparent, improper investorrnselection were nonexistent; in turn most allocated plots in serviced land arernnot developed, rather fenced for a long period even after the expiration of gracernperiod.rnMany measures have been taken to tackle urban problems in our city. One ofrnwhich is regarding the land policy that is very delicate, the most important andrnpolitical sensitive area, which the national government has directly involved inrnit. Addis Ababa is presently a head of many others Ethiopian cities to adoptrnland lease regulation as well as land and housing management practices.rnThe City Government Addis Ababa intends to promote the formal sectorrnmedium and large scale businesses by instituting among other, an efficient andrnsustainable land management system that would ease the access to land. Notrnwith standing system that would ease the access to land. Notwithstanding thernefforts being made by the municipality to improve service delivery, therernappears to be a need to introduce more transparent and accountable workingrnprocedures that pertain to land management related services. The sluggishnessrnand wide spread incidence of corrupt practices in urban land management hasrnto be seen in lights of the rule of laws. Lack of qualified man power and thernmotivation and ethical profile of the organizational staffs were bad, for somernofficials it was extremely lower; which lead to poor performance.