Egypt’s Parliament Approves Final Draft of Old Rent Law

Egypt’s House of Representatives has given final approval to the long-awaited Old Rent Law, introducing a transitional framework for phasing out long-term rental contracts under the old rent system.

Under the new law, tenants of residential units will be granted a transitional period of seven years from the date the law comes into effect. During this time, they will be allowed to remain in the property, after which they will be legally required to vacate and return it to the owner. For commercial and administrative properties, the transitional period will be five years.

The law also introduces a significant increase in the legal rental value. In high-end residential areas, rent will rise to 20 times the current amount, with a minimum of EGP 1,000. In mid-range areas, rent will increase tenfold with a minimum of EGP 400, while in economic areas, it will also rise tenfold with a minimum of EGP 250.

During the transitional period, rent will increase annually by 15%.
While the law has been approved by Parliament, it has not yet come into effect.