The House gave its final approval to controversial amendments to overhaul decades-old rent law on Wednesday, despite pushback from several MPs over the article setting a seven-year transitional period to vacate residential units.

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The law sets a seven-year transitional period for residential units and five years for non-residential units rented by individuals. After the transition, tenants must vacate the property, with all old rent regulations scrapped at the end of the period.

“Old rent” will see steep increases during the transitional period:

  • Residential units in “premium” areas: 20x the current “old rent,” with a minimum of EGP 1k per month.
  • Residential units in “middle-income” areas: 10x current rents, minimum EGP 400.
  • Residential units in “lower-income” areas: 10x current rents, minimum EGP 250.
  • For non-residential units rented by individuals, the increase is set at 5x current rents.
  • Rents will continue to rise 15% each year throughout the transitional period, whether for residential or non-residential purposes.

How will it play out? A committee will be formed in each governorate to classify properties into each of the three categories based on factors like location, building condition, infrastructure, transport, and local services.

“The state will not allow anyone to be left homeless,” said Parliamentary Affairs Minister Mahmoud Fawzy in reference to an amendment to obligate the government to provide the original tenant or spouse under an extended contract state housing for rent or ownership.

Properties can now be reclaimed if they haven’t been occupied for a year, unless there is a reason to explain why the property had been left vacant. Landlords can also reclaim properties if tenants own another usable unit for the same purpose.

WHAT’S NEXT- The bill will be passed to President Abdel Fattah El Sisi to sign into law.

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