Old Rent Law’s First 15% Annual Increase Takes Effect in September

The first 15% annual increase under Egypt’s old rent law will take effect in September 2026 for residential and non-residential units covered by the legislation.

Under Law No. 164 of 2025, the increase will be calculated on the updated rent established under the new rules for each unit, rather than on the amount tenants were paying before the law came into effect.

The legislation sets a seven-year transitional period for residential leases and a five-year period for non-residential leases. By September 2026, one year will have passed since implementation, leaving around six years for residential units and four years for non-residential properties within the transition.

For residential units, minimum monthly rents are determined according to area classification. The law sets a minimum of EGP 1,000 in distinguished areas, EGP 400 in middle-income areas and EGP 250 in economic areas. The annual 15% increase will apply to the rent established following the completion of area classifications by the relevant survey committees. For example, a monthly rent of EGP 1,000 would increase by EGP 150 to EGP 1,150.

The increase will be applied each year to the latest adjusted rent throughout the transitional period, meaning the monetary value of the annual increase will rise over time rather than remaining fixed.