Ahmed Kamel – Egypt Daily News
Government-appointed committees tasked with surveying and classifying old rent units across Egypt concluded their work on Thursday, 5 February, marking a key step toward implementing new rent values under the amended old rent law scheduled to take effect in 2026.
The completion of the committees’ mandate follows a three-month extension approved by the prime minister, underscoring the sensitivity and scale of the process, which affects millions of residential and non-residential units nationwide. Their findings now pave the way for the formal application of rent increases stipulated by the law.
Under the legislation, residential areas are classified into three main categories prime, middle-income, and economic based on a detailed set of criteria. These include geographic location, quality of infrastructure, availability of public services, proximity to major transport corridors, population density, and the dominant type of activity in each area. The classification determines the scale of rent adjustments for units subject to the old rent system.
According to the law, rents in prime areas will be increased to up to 20 times their current value, with a minimum monthly rent set at 1,000 Egyptian pounds. In middle-income areas, rents will rise by 10 times, with a minimum of 400 pounds, while in economic areas the increase will be fivefold, with a minimum of 250 pounds per month.
The law also establishes a gradual transition mechanism to mitigate the social impact of the adjustments. Starting from the second year of implementation, rents will be subject to an annual increase of 15 percent. This transitional period will extend over seven years for residential units and five years for non-residential properties, after which contractual relationships are expected to be fully liberalized.
Officials say the completion of the classification process removes one of the last administrative hurdles before enforcement, providing clarity for both landlords and tenants regarding the new rent structure. The government has repeatedly framed the reform as a long-overdue step to correct distortions created by decades of rent freezes, which left rents far below market value and discouraged maintenance and investment in aging properties.
At the same time, the changes have sparked public debate, particularly among tenants concerned about affordability and displacement. Authorities have stressed that the phased approach is designed to balance the rights of property owners with social considerations, while allowing sufficient time for households and businesses to adjust.
With the work of the committees now complete, the rent increases outlined in the law are set to formally enter into force, placing the old rent system on a defined path toward gradual reform beginning in 2026.
