Egypt’s Supreme Constitutional Court (SCC) ruled on Saturday, 9 November, the Old Rentals Law’s fixed seven percent rate on residential rentals as unconstitutional, urging parliament to amend the law by the end of its current legislative term. This decision impacts thousands of landlords and millions of tenants governed by Law No. 136 of 1981, known popularly as the ‘Old Rentals Law’, which has, for decades, restricted rent price adjustments. According to the SCC, the fixed rate, specified in Articles 1 and 2 of the 1981 law, capped annual rent at seven percent of a property’s assessed value. The court argued that this fixed rate infringes on property rights, noting that rental values should instead reflect economic criteria that balance landlords’ and tenants’ interests —particularly amid Egypt’s inflation and economic challenges. The Old Rentals Law was originally enacted in the post-World War II era and aimed to stabilize rent prices to protect tenants from sudden increases. The law was expanded under President Gamal Abdel Nasser’s administration, mandating rental price cuts of up to 20 percent, and later included provisions allowing tenants to pass rental contracts down to their descendants. While this…
