FIG Peer Review Journal


Institutional Analysis of Condominium Management System in Amhara Region: The Case of Bahir Dar City (5531)

Zelalem Yirga Adamu (Ethiopia)
Mr. Zelalem Yirga Adamu
Lecturer & Acadamic program manager
Bahir dar University
Bahir Dar, Kebele 3,
P.o.Box 931
Bahir Dar
Corresponding author Mr. Zelalem Yirga Adamu (email: bagio1992[at], tel.: +251 910 287218)

[ abstract ] [ paper ] [ handouts ]

Published on the web 2012-03-08
Received 2011-11-01 / Accepted 2012-02-02
This paper is one of selection of papers published for the FIG Working Week 2012 in Rome, Italy and has undergone the FIG Peer Review Process.

FIG Working Week 2012
ISBN 97887-90907-98-3 ISSN 2307-4086


To address an ever-worsening housing shortage in Bahir Dar City, the capital of Amhara region, the City Administration has, since 2006, launched grand low cost condominium housing projects. Consequently, privatization took the form of the transfer of ownership of an individual flat or unit together with shared rights and obligations for the common elements of the property. As a condominium management system, the regional legal regulations require the establishment of an owners’ association in each privatized multi-dwelling residential building to represent all the owners in matters of common ownership, and provided and housing rule for owner’s association operational practices. Despite such institutional arrangement, there is high dissatisfaction among condominium residents. This study, thus, aims to empirically explore and analyze the determinant factors that influence performance of owners associations. In order to evaluate the given institutions outcomes, the study adopted Institutional Analysis and Development (IAD) framework as diagnostic tools. This study basically examined how Ostrom’s eight design principles that characterize long enduring, self-governed common-pool resource (CPR) institutions apply to Bahir Dar city condominium commons management. The study used both primary and secondary data. Primary data were gathered using questionnaires, guided interview and focused group discussion. Besides, the study used document analysis and review from the existing national and regional statutes, condominium agreements, housing rules, literatures and related documents. Both quantitative descriptive statistics and qualitative description approaches were applied to analyze the gather data. Results of the study revealed that notwithstanding the presence of institution to govern condominium management, performance of owners’ associations has been proved to be slow. A number of institutional obstacles and challenges in hinder the efficient operation of condominium management system. Among other things, absence of information on the detailed structure of laws on condominiums among residents, lack of support from city administration in providing guidelines, training and educational manuals for members of condominiums, administrators etc, and diversity of unit users are considered to be major impediment of association performance. The results have important implications for city administration and housing agencies on institutional arrangement setting up. Lastly, suggestions are provided on ways of maximizing the performance of owners association.
Keywords: Legislation; Condominium; Owners Associations; Institution Analysis