El-Sisi Approves Old Rent Law Amendments

Egyptian President Abdel Fattah El-Sisi has ratified the amendments to the Old Rent Law, with the updated regulations scheduled to take effect from the next rent payment cycle following the law’s implementation.

The revised law introduces a phased increase in rental values for residential units, structured according to geographic classifications. In premium areas, rents will be elevated to twenty times the current legal rate, with a minimum monthly rent of EGP 1,000. For mid-range and economic zones, rents will increase to ten times the existing rate, with a minimum of EGP 400 in economic areas and EGP 250 in designated special economic zones.

Regarding non-residential properties—such as retail shops and office spaces—the law stipulates an immediate adjustment, increasing rents to five times the current legal value, accompanied by an annual increase of fifteen percent thereafter.

Additionally, the amendments outline a clear timeline for phasing out existing rental contracts. Residential leases will be terminated after a seven-year transition period, while commercial and administrative contracts will expire after five years. Throughout these periods, rents will gradually increase to align with fair market values.

The Egyptian Parliament had previously given final approval to the legislation, commonly referred to as the “Old Rent Law,” during a plenary session held on Wednesday, July 2. Proposed by the government, the law aims to recalibrate rental agreements and redefine the legal framework governing the relationship between landlords and tenants.