After considerable discussion and pressure from landlords and lawyers, Egypt has amended the Old Rental Law after years and years of anticipation. The goal is to reform decades of rental asymmetries. The new law passed by the House of Representatives in early July 2025 is a sweeping law. It will impact millions of tenants and landlords alike.
Background of the Amendment
In November 2024, the Supreme Constitutional Court ruled that the fixation of old rent prices was unconstitutional. Therefore, the State had to modify Laws No. 49 of 1977 and No. 136 of 1981.
Late in June 2025, and in early July 2025, the House of Representatives voted on the proposed amendments to these laws in their final form. The ratification of the President and the official publication of the Official Gazette can be expected shortly.
Changes: What the New Rental Law Introduces
The most important change enacted by the new rental law is the gradual end of older rental contracts signed under legislation dating back to 1977 and 1981. These contracts sometimes allow tenants and their successors the right to occupy regardless of rent increases. They often involve a nominal rent payment – often less than EGP 10 a month.
Important components of the new law include:
- End of lease contracts:
- Residential units: All old rent contracts will expire seven years after the law is enacted.
- Non-residential units: Contracts will terminate in five years, unless parties agree otherwise.
- Minimum rent values based on zoning: Properties are classified into three zones:
- Premium areas: Rent set at no less than EGP 1,000/month or 20× the current legal rent.
- Mid-range: At least EGP 400/month or 10× the current legal rent.
- Economic areas: Minimum EGP 250/month.
- Yearly rent rise: Rents will increase 15% each year during the transition period.
- Eviction scenarios: Landlords can seek eviction when the property has been shut down for more than a year. They can also do so when a tenant buys another suitable property.
- Tenant mitigation options: Before eviction, tenants and their heirs could apply to the government for housing assistance (or rent subsidy). In this case, low-income tenants rise to the top of the list.
These measures are meant to balance respecting tenants’ rights while providing long-term municipal property owners back their real estate long occupied by tenants.
Legal Scenarios Concerning the Promulgation of the Old Rent Law Amendments
Given that the amendments to the Old Rent Law received parliamentary approval, two constitutional scenarios now govern the legislative process. In accordance with Article 123 of the Egyptian Constitution, the President of the Republic has a thirty-day period. This period is from the time of receipt to approve or object to the (proposed) legislation.
The first scenario, which is what property owners are hoping for, is for the President to approve the law. Subsequently, for the law to be published in the Official Gazette. Then it would come into force on the day after it is published. This is the usual legislative process.
The second scenario is for the President to use his constitutional right. He may object to the law in whole, or in part, and return the law to the House of Representatives for further deliberation. In this context, the law must be reviewed by Parliament again. They may amend the law or submit the law in its original form.
This article offers a general overview of the subject matter and is not a substitute for legal advice. For guidance tailored to your specific circumstances, professional consultation is recommended.
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