7 updates on Egypt’s new draft Rent Law

In a move aimed at ending decades of legal ambiguity and economic tension, Egypt’s government has submitted a revised version of the controversial Rent Law to Parliament. The new draft, recently approved by the Housing Committee, seeks to modernize rent agreements—particularly those governed by “old rent” contracts dating back to the 1970s and 1980s. Here's a breakdown of the key updates:

1. Old rent contracts to expire after 7 years
Under the new draft, residential leases under the old rent regime will be terminated after a seven-year transitional period. This marks a significant shift from the current system, where tenants can reside indefinitely and pass rights to heirs under fixed rent terms.

2. Rents to increase gradually during the transition
Over the seven-year period, rents will rise annually by 15%, with minimum base rates set by area:

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  EGP 250/month in economic districts

  
  


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  EGP 400/month in middle-income areas

  
  


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  EGP 1,000/month in upscale neighborhoods

  
  

3. Tenants will have housing alternatives
The draft law guarantees that tenants affected by the changes will have access to alternative housing, either for rent or purchase, from state-allocated units. This aims to soften the impact on vulnerable renters.

4. Law aims to balance landlord and tenant rights
The legislation explicitly seeks to strike a balance: giving landlords the chance to earn fair market returns, while preventing the displacement of long-time tenants without reasonable alternatives.

5. Ending a legacy of rent freeze laws
The existing laws—mainly from 1977 and 1981—granted lifetime tenancy rights at fixed nominal rents, with inheritance rights for co-residing family members. Many properties are still being rented for as little as EGP 5 to 10/month, particularly in downtown Cairo.

6. Millions of units affected, especially in Cairo
Egypt has an estimated 3 million rented units, with nearly 2 million in Cairo alone, according to the state-run statistics agency CAPMAS. The reform could reshape the housing market in key urban centers.

7. Owners and tenants remain divided
Landlords argue that the old system strips them of property value, as they receive virtually no return on assets. Tenants, however, fear market-based rents could push them out of their homes or into financial hardship.

As Parliament prepares to debate the bill, the proposed Rent Law is shaping up to be one of Egypt’s most consequential legal reforms in decades—potentially transforming not just landlord-tenant relations, but also the broader urban housing landscape.