The revamped Old Rent Law takes shape: The Madbouly government submitted the final draft of the bill to overhaul Egypt’s decades-old rent law to the House. The bill replaces a previous draft submitted on 28 April and introduces key changes to the transitional period, rent hikes, and tenant support mechanisms, according to a document seen by EnterpriseAM.

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All contracts to be liberalized after a transition period — which will last longer than expected: Under the latest iteration of the bill, tenants of units currently subject to the old rent law will have to vacate their homes at the end of a transition period of seven years for residential units and five years for non-residential units leased by individuals — two years longer than the five years mentioned by Prime Minister Moustafa Madbouly in April. After that, all contracts will fall under the Civil Code, meaning landlords and tenants would negotiate terms freely.

Rents will rise beyond initial estimates: The final draft outlines specific multipliers and minimum monthly rents for units rented out under the Old Rent Law based on the property's location and use. Here’s the breakdown:

  • Units in prime residential areas will see their rent increase 20x its current value, reaching a minimum of EGP 1k/month;
  • Units in middle-income residential areas will see their rent go up to 10x, reaching a minimum of EGP 400/month;
  • Units in economic residential areas will see their rent rise 10x, reaching a minimum of EGP 250/month;
  • For non-residential units rented out to individuals, rents will increase 5x across the board;
  • Annual increases: Rent will go up 15% every year during the transitional period.

This framework is significantly more granular than the proposal the House was mulling over for the past few weeks, which suggested a flat minimum of EGP 1k for city units and EGP 500 for rural units.

How this will work: A committee will be formed in each governorate to classify properties into three categories — prime, middle-income, and economic — based on factors like location, building condition, infrastructure, transport, and local services. The committees will set appropriate rent for each category and must complete their work within three months of the law’s implementation.

Immediate eviction allowed under specific conditions: The law introduces new conditions that allow landlords to evict tenants before the end of the transitional period in cases where a tenant leaves the property unoccupied for over a year without justification, or if they own another suitable unit that serves the same purpose — whether residential or commercial.

The state will offer alternative housing — and old rent tenants get first dibs: Tenants can apply for state housing — for rent or ownership — if they agree to vacate their current unit upon allocation. Priority will be given to vulnerable groups. The law also gives old rent tenants priority access to any government housing projects announced during the transition period, provided they commit to handing over their old unit.

What’s next? The new bill was referred to a joint committee between the housing, local administration, and constitutional affairs committees.

ALSO- The presidency has given its final sign-off on the Property ID Act to assign a unique ID to every property in Egypt as part of a centralized, secure geospatial database, according to the Official Gazette. In addition to being on a national online database, the property ID must be displayed on the buildings via scannable plaques issued by the state.

** We recently broke down the Property ID Act — and what it means for owners, investors, and the real estate market — in one of our Hardhat deepdives, which you can read here.

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