Ahmed Kamel – Egypt Daily News
The first periodic annual increase in rent for units covered by Egypt’s old-rent law will take effect on Tuesday, September 1, 2026. The increase is based on Law No. 164 of 2025, which introduced new rules governing the relationship between landlords and tenants and established a gradual system for adjusting rent during a transitional period.
Under the law, the annual increase is set at 15% of the newly determined rent. The increase will not be calculated based on the old amount previously paid by the tenant. Instead, it will apply to the new rental value established after the law’s provisions are implemented.
The rent-adjustment process consists of two stages. First, a new rental value is determined according to the classification of the area where the unit is located. After that, the new value is increased annually by 15%, beginning in September 2026 and continuing throughout the transitional period.
How the New Rent Is Determined
The law divides residential areas into three categories: premium, middle-income, and economic areas. The amount of rent depends on the category assigned to the area, the existing legal rent, and the minimum amount specified for each category.
In premium areas, the new rent is set at 20 times the existing legal rent, subject to a minimum of 1,000 Egyptian pounds per month. In middle-income areas, the new rent is set at 10 times the existing legal rent, with a minimum monthly amount of 400 pounds.
In economic areas, the new rent is also set at 10 times the existing legal rent, with a minimum monthly amount of 250 pounds. Once the new rent is determined under these rules, the annual 15% increase will be applied beginning September 1, 2026.
Examples of the Annual Increase
If the new rental value of a unit is set at 1,000 pounds per month, the first 15% increase will raise the monthly rent to 1,150 pounds starting in September 2026. In September of the following year, the 15% increase will be calculated on the new amount of 1,150 pounds, raising the rent to 1,322.50 pounds per month. After another increase at the same rate, the rent will rise to approximately 1,520.88 pounds.
If the new rent is set at 400 pounds per month, the first annual increase will raise it to 460 pounds. In the following year, the 15% increase will be calculated on 460 pounds, bringing the monthly rent to 529 pounds. The same calculation method will continue to apply in subsequent years.
For a unit with a newly determined rent of 250 pounds per month, the first increase will raise the amount to 287.50 pounds. In the following year, the rent will rise to approximately 330.63 pounds after the 15% increase is calculated on the previous amount.
These figures illustrate the calculation method. The actual rent will vary from one unit to another depending on the new rental value determined for the unit and the classification of the area where it is located.
The Increase Will Apply Every Year
The 15% increase is not limited to September 2026. The law provides for a recurring annual increase at the same rate throughout the transitional period. As a result, each increase will be calculated on the rental value established after the previous increase. It will not be calculated on the original rent paid under the old-rent system.
For example, the rent due in September 2027 will not remain the same as the amount paid in September 2026. Instead, it will increase by 15%. The same rule will apply in the following years for as long as the transitional provisions remain in effect.
Transitional Period for Old-Rent Contracts
Law No. 164 of 2025 sets a transitional period for ending old-rent contracts. The length of this period depends on the type of unit and its purpose.
For residential units covered by the law, the transitional period lasts seven years from the date the law takes effect. For nonresidential units rented to individuals for purposes other than housing, the transitional period lasts five years.
The annual 15% rent increase forms part of the rules governing this transitional stage. During this period, the rental value is first reassessed and then increased each year according to the percentage established by law. The contracts will end according to the transitional periods specified for each type of unit.
