Egypt Daily News – The decision by President Abdel Fattah El-Sisi to end the current session of the Egyptian Parliament without ratifying the proposed amendments to the Old Rent Law has reignited a contentious legal and social issue that affects millions of property owners and tenants across the country.
Following the parliamentary recess, landlords of residential and commercial properties governed by the decades-old Rent Law have begun preparing to issue legal warnings to tenants, aiming to raise rental rates. This comes in the wake of a ruling by Egypt’s Supreme Constitutional Court in November 2024, which found the long-standing fixed rental value system to be unconstitutional.
Constitutional Court Ruling Now in Effect
The court’s decision, which invalidated the fixed annual rent provisions under Law No. 136 of 1981, took effect on July 10—one day after the official dissolution of Parliament, as outlined in the ruling’s implementation framework published in the Official Gazette.
While the amended Rent Law had been passed by Parliament earlier this month, it remains pending formal approval by the President. In the absence of this ratification, legal experts say that landlords and tenants are now navigating a grey area—either acting in anticipation of the new law or deferring to the court’s ruling.
Landlords Refusing Old Rents, Tenants Fighting Back
Cases are already emerging across the country. In Helwan, for example, a 65-year-old tenant found his landlord refusing to accept the EGP 70 monthly rent he has been paying for over four decades. Instead, the landlord demanded immediate eviction, claiming the new law is already in force.
Sami Hamdan, the tenant’s lawyer, told Al-Shorouk newspaper that his client had to deposit the rent with the court to preserve his legal standing. Hamdan stressed that since the law has not yet been signed by the President, it cannot be legally enforced.
“Any attempt to implement the law prematurely is invalid,” he said, warning of a surge in legal disputes unless authorities provide clearer guidelines. He called for “consideration of the economic and social impact on affected tenants.”
Negotiated Rent Increases and Legal Action
In some cases, landlords are managing to reach agreements with tenants. Hamdan mentioned another client who negotiated an increase from EGP 50 to EGP 300 with several tenants, issuing new receipts accordingly. However, other tenants refused the revised rates, prompting the landlord to begin legal proceedings, starting with formal warnings and potentially ending in lawsuits to annul existing contracts.
In Agouza, property owner legal representative Ahmed El-Saqeely reported that his client had already filed lawsuits a year ago to demand either rent increases or evictions. With the new constitutional ruling in effect, he is now preparing fresh warnings citing the court’s decision as a basis for raising rents.
Legal Debate Over Applicability of the Ruling
Despite the ruling, there is ongoing legal debate over whether it is immediately binding. Lawyer Ashraf Farhat, himself a property owner in Maadi, told Al-Shorouk that he has not yet taken any legal action, as he views the ruling as lacking enforceability in the absence of a new legislative framework.
“There’s still no officially defined rent value or clear mechanism,” Farhat said. “The contract remains the law between the parties. Until the new law is signed and enacted, both landlords and tenants remain bound by existing terms.”
Farhat also noted that any rent reassessment should be managed by designated valuation committees, depending on the location and nature of the property.
Highlights of the New Amendments
Parliament approved the amended Old Rent Law on July 2, 2025. The changes include:
- A 7-year transitional period for residential properties, and 5 years for non-residential properties rented by individuals.
- After the transition, tenants must vacate the property, and leases will be subject to the Civil Code and mutual agreement.
- Immediate rent increases, such as:
- 20 times the current legal rent (minimum EGP 1,000/month) for units in prime areas.
- 10 times the current rent (minimum EGP 400 or EGP 250/month) for medium and economic areas.
- 5 times current rent for non-residential units.
- Annual rent increases of 15% during the transitional period.
What’s Next?
As Egypt awaits the President’s final word on the amended law, millions of landlords and tenants remain in limbo. Legal experts warn that premature enforcement or refusal to accept rent could trigger widespread litigation, while also urging the government to clarify the legal status of the court ruling and the legislative amendments.
In the meantime, property owners are weighing their legal options—and some are moving forward with warnings and court filings, setting the stage for a potentially protracted legal and social showdown over one of Egypt’s most enduring property disputes.
