In a landmark decision poised to reshape Egypt’s real estate landscape, the Egyptian Parliament approved long-debated amendments to the Old Rental Law on 2 July, marking a major step toward resolving decades of legal and social contention.
The revisions seek to recalibrate the landlord-tenant dynamic in enduring rental contracts—many dating back to the 1950s and 60s—that have kept rents fixed for generations.
Under the new legislation, residential units leased through old rent agreements will enter a transitional period of seven years, during which rents will gradually rise based on each property’s classification and location. Non-residential properties—such as commercial and administrative units—will follow a five-year transition timeline.
The law classifies areas into three categories: premium, middle-income, and economic zones, each with specific rental adjustments:
- Premium zones: Rents will rise to 20 times the current rate, with a minimum threshold of EGP 1,000 per month.
- Middle-income zones: Rents will increase tenfold, with a minimum of EGP 400.
- Economic zones: Rents will also increase tenfold, with a minimum of EGP 250.
A 15% annual rent increase will apply throughout the respective transitional periods.
To ensure equitable application, the law mandates the formation of specialized classification committees in each governorate. These bodies will evaluate properties based on objective criteria, including geographic location, infrastructure, accessibility to public services, and prevailing market rents. Committees must submit findings within three months, extendable once by Prime Ministerial decree.
The amendments also outline specific conditions under which landlords may reclaim their properties before the transitional period ends. These include cases where a property remains unoccupied for over 12 consecutive months without justification or if the tenant is proven to own another suitable residential unit.
In such instances, landlords may pursue fast-track eviction through urgent courts—bypassing lengthy litigation—while retaining the right to seek compensation.
To safeguard vulnerable tenants, the government has pledged to provide alternative housing solutions. Tenants or their heirs may apply for state-subsidized rental or ownership units, contingent on submitting a formal declaration of voluntary evacuation. Priority will be given to low-income households, elderly residents, and individuals with special needs. The Cabinet must issue detailed eligibility and allocation criteria within 30 days of the law’s enactment.
Parliamentary Debate
The bill’s passage followed heated debate. Several MPs—including members of the Social Democratic Party, El-Adl Party, and the Tagammu Party—staged a walkout after proposed amendments to extend the residential transition period to 10 or 15 years were rejected.
MP Abdelmonem Imam, head of El-Adl Party, criticized the provision for mandatory evictions of elderly tenants. “This law affects over 500,000 Egyptians aged 60 and above. We cannot support eviction without offering dignified alternatives,” he said. Imam also raised concerns over whether some governorates have the geographic or infrastructural capacity to accommodate displaced tenants.
The law is now pending final ratification by the President and is expected to come into effect within weeks. Legal experts anticipate a surge in judicial cases as both landlords and tenants navigate the new legal landscape. Economists and urban planners will be monitoring its impact on housing supply, rental prices, and social cohesion—particularly in dense urban centers such as Cairo and Alexandria.
While hailed as a structural reform for Egypt’s property market, the law’s effectiveness hinges on the government’s ability to enforce it fairly, provide viable housing alternatives, and uphold social stability amid one of the nation’s most complex policy shifts.
Government Measures
Minister of Housing, Utilities, and Urban Communities Sherif El-Sherbiny assured the public that no tenant will be forcibly evicted under the newly approved law.
In a televised interview on Friday, El-Sherbiny announced the launch of a digital platform to register tenants’ data and evaluate their eligibility for support. He also revealed plans for a dedicated support fund—modeled after the Social Housing Fund—to provide financial assistance and alternative housing.
El-Sherbiny emphasized that extensive social housing projects have been implemented nationwide and reaffirmed the state’s commitment to preventing forced displacement. He noted that, since 2014, over five million housing units have been delivered in partnership with the private sector.
Minister of Local Development Manal Awad added that over 61 million square meters of vacant land—reclaimed under the 2017 Land Recovery Law—are available for new housing developments for displaced tenants. She confirmed that her ministry will submit a detailed, audited land inventory to Parliament and coordinate with agencies such as the Agricultural Reform Authority and the Ministry of Endowments to secure additional land, especially in governorates lacking desert space.
These government efforts aim to shield low-income tenants and ensure that the law’s implementation proceeds in a socially responsible manner, preserving both housing security and social harmony.
