Ahmed Kamel – Egypt Daily News
The first annual increase of 15% on old rent covering units governed by the Egyptian rent laws, will begin next September, according to provisions of Law No. 164 of 2025. The increase is set to apply to “old lease” units in the first phase of the law’s implementation schedule, marking a key step in a transition process designed to gradually end the special legal relationship between landlords and tenants.
The law formally entered into force on August 5, 2025. It establishes a timetable to unwind the existing lease regime over a defined period: seven years for residential units and five years for non-residential units tied to leases for natural persons. The framework includes annual adjustments to rent values, as well as eventual pathways that govern what happens once the transitional period ends.
During the first year of the law’s application, rent increases for residential units varied by location classification. In “highly distinguished” areas, rent rises were set at 20 times the prior value, with a monthly minimum guarantee of 1,000 Egyptian pounds. Under the rules described in the text, rent increased from 100 pounds to 2,000 pounds in these areas. In “medium” areas, the adjustment rose by 10 times, with a minimum of 400 pounds, moving rents from 50 pounds to 500 pounds.
In “economic” areas, rent was raised by 10 times with a minimum of 250 pounds, bringing rents from 30 pounds to 300 pounds. For non-residential units, rent adjustments are structured differently: the law raised the applicable rent by five times the previous rate, without a minimum threshold specified in the same way as residential areas. As a result, non-residential rents could increase from 1,000 pounds to 5,000 pounds.
With the implementation of the next 15% annual increment, the minimum rent ceilings for old leases will also shift upward. For economic areas, the minimum will become 287.5 pounds instead of 250. In medium areas, the minimum rises to 460 pounds, up from 400. In highly distinguished areas, the minimum will increase to 1,150 pounds from 1,000.
The law’s area classification is based on five criteria: geographic location, building standards, available amenities, the transport network, and public services. Official data cited indicates that the vast majority of old-lease tenants about 82% are concentrated in four governorates: Cairo, Giza, Alexandria, and Qalyubia, according to 2017 figures from the Central Agency for Public Mobilization and Statistics.
When the transitional period ends, the law outlines three potential outcomes for tenants. The first is renegotiating a new lease by mutual agreement at market prices. The second is relocating to alternative housing provided by the state. The third is securing another housing unit personally.
The government opened applications for alternative units beginning October 1, 2025, first through an electronic portal and then through 500 post offices. Later, the Council of Ministers approved an extension for the submission window by three additional months, pushing the deadline to October 12, 2026.
Meya Abdel Hamid, the Executive President of the Social Housing and Mortgage Finance Fund, said at the time that total applications reached nearly 102,000 requests: about 99.8 thousand for residential units and 1,790 for non-residential units. She also stated that the first phase does not require attaching documents, but applicants must provide proof of income and tenancy relationship at a subsequent stage.
The application is limited to original tenants or those whose lease relationships were extended under old rent laws specifically laws No. 49 of 1977 and No. 136 of 1981 provided the leases are for an indefinite term. Contracts signed after January 1996 are excluded. In the later documentary phase, applicants are expected to submit: a national ID copy, the rental contract and evidence proving the lease continues, and a declaration confirming they will vacate and hand over the unit immediately upon receiving the alternative. Additional documents include children’s birth certificates and adult IDs, marital status papers (marriage certificate, divorce papers including a court ruling on empowerment, or a death certificate and inheritance documentation), and evidence of qualification or government services access for people with disabilities.
Families are also required to provide proof of income. Depending on employment status, this can include certificates of net income for public or private sector workers; extracts of taxes and a certificate from a licensed accountant plus commercial registration details for freelancers and business owners; or pension documentation for widows and pensioners, and evidence of alimony for divorced individuals. For non-residential units, applicants must also provide tax registration, commercial registry entries, and a business license to prove ongoing activity.
While the law is now moving through its staged rollout, dispute remains. Mustafa Abdel Rahman, head of the Old Rent Landlords Association, said the new law regulated the relationship between parties and that there has been widespread compliance with the scheduled rent increases and minimums, alongside reaching amicable agreements for transferring some units. In contrast, tenants are reportedly betting on a judicial track to invalidate the law or parts of it.
A legal representative of tenant groups, Ayman Essam, counsel for the Old Tenants Association—said around 1,000 appeals have been filed challenging the law and its implementing decisions, as well as the area classifications before Egypt’s administrative judiciary and the State Council. Essam argues that the law combines high rent with eviction outcomes, which he says contradicts the principles established by the Supreme Constitutional Court. In November 2024, the constitutional court ruled against fixed rent stability, describing it as an infringement on property rights.
With the first 15% annual increase scheduled to start next September, the debate is expected to intensify as tenants and landlords navigate both the financial changes and the upcoming transition pathways outlined by the 2025 law.
