Egypt’s House of Representatives passed on Wednesday, 2 July, long-anticipated amendments to the Old Rent Law, officially approving new legislation that will gradually terminate long-standing fixed-rent contracts.
Under the newly approved law, residential tenants will be granted a seven-year transitional period, while non-residential tenants, such as those renting for commercial use, will have five years before contracts are terminated.
After this period, all new rental agreements will be subject to Egypt’s Civil Code, which allows landlords and tenants to freely agree on terms.
The law introduces a gradual 15 percent annual increase in rent during the transitional period. In addition, current rental values will be adjusted upwards based on location. In prime areas, rents may increase up to 20 times the current amount, with a minimum set at EGP 1,000 (USD 20) per month.
Middle-income zones will see at least a tenfold increase, with a minimum of EGP 400 (USD 8), while units in economic areas will rise to at least EGP 250 (USD 5). For non-residential properties rented by individuals, the rent will be multiplied by five.
The move follows a ruling by Egypt’s Supreme Constitutional Court in November 2024, which deemed fixed rents unconstitutional and called for legislative intervention to address the long-standing imbalance between landlords and tenants.
Yesterday, Minister of Local Development Manal Awad affirmed that land had been allocated across several governorates for new housing developments aimed at supporting affected families. She emphasized that the government would not abandon citizens currently living under old lease contracts.
According to Egypt’s official statistics agency CAPMAS, approximately 409,000 households fall under the category of original tenants, many of whom are over the age of 60. Cairo accounts for the largest share of these households, followed by Alexandria, Giza, and Dakahlia.
Officials maintain that the new legislation aims to resolve a decades-old crisis while striking a balance between protecting tenants and restoring rights to property owners.
The decision has faced backlash, with MP Abdelmoneim Emam warning that many elderly tenants could be left with nowhere to go once the seven-year transitional period ends.
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