Ahmed Kamel – Egypt Daily News
With the official enforcement of the long-anticipated Old Rent Law following President Abdel Fattah El-Sisi’s ratification and its publication in the Official Gazette, millions of tenants across Egypt are now seeking clarity on what this legislative shift means for their monthly rent obligations.
The newly enacted law, aimed at reforming outdated rent agreements dating back decades, introduces a structured framework for determining new rent values. While designed to be implemented gradually, the law signals a significant change for tenants who have long benefited from nominal rental rates.
Transitional Period: Flat Rent Until Area Classification Completed
Under the law, a temporary rent of EGP 250 per month will be applied to all residential tenants until government-formed survey committees appointed by governors complete the classification of neighborhoods across the country. These committees are responsible for categorizing areas into one of three segments: premium, middle-class, or economic, based on factors such as infrastructure, location, and access to utilities and services.
Once a classification is finalized and officially announced by the governor, tenants will be required to pay any rent differentials retroactively, if applicable, through monthly installments. This applies not only to original tenants but also to those who have inherited rental contracts.
New Rental Rates Based on Area Type
Upon classification, new rental rates will be applied as follows:
- Premium Areas: 20 times the original rent, with a minimum of EGP 1,000.
- Middle-Class Areas: 10 times the original rent, with a minimum of EGP 400.
- Economic Areas: 10 times the original rent, with a minimum of EGP 250.
These adjustments reflect the government’s attempt to modernize the rental housing market while also introducing a degree of fairness based on the area’s value and amenities.
Annual Increase in Rent
In addition to the new baseline rates, the law stipulates an annual rent increase of 15%, aiming to gradually align rental values with market standards over time.
A Balancing Act Between Landlords and Tenants
The Old Rent Law has long been a point of contention in Egyptian society. Critics argued that outdated rental contracts heavily favored tenants at the expense of landlords, often locking rents at 1960s and 1970s levels for decades. The new law seeks to strike a balance, allowing landlords to receive more realistic rental returns while ensuring current residents are not abruptly displaced.
Still, the transitional phase is expected to bring uncertainty for many households. Until the classification process concludes, the temporary EGP 250 monthly rate will apply across the board. Authorities emphasize that the changes are designed to be gradual and manageable, with financial cushions such as installment options built into the process.
As implementation moves forward, both tenants and landlords are encouraged to stay informed and follow official announcements from local governorates regarding area classifications and payment timelines.
