For decades, Egypt’s old rent laws have shaped the country’s urban housing landscape—offering tenants long-term security while placing significant constraints on landlords and the broader real estate market. Today, with a new draft law under parliamentary review, Egypt stands at a crossroads between preserving social stability and promoting market efficiency.
The Old Rent Crisis and Push for Reform
Egypt’s old rent laws, particularly Laws No. 49 of 1977 and No. 136 of 1981, effectively froze rents for more than 3 mn residential and non-residential units. In many cases, monthly rents remained below EGP 100. While these laws offered stability for tenants, they severely limited landlords’ ability to generate income, invest in maintenance, or benefit from urban expansion in cities such as Cairo and Alexandria. Tenants, too, encountered legal ambiguities, especially regarding the inheritance of rental contracts.
The government submitted a draft law to Parliament to address these imbalances. Prior to this, a wide-ranging public dialogue was conducted with input from real estate experts, civil society organizations, and community stakeholders. This consultative process helped shape the draft legislation currently under parliamentary review.
Key Provisions of the Draft Law
On May 1, 2025, local newspapers published the main features of the draft law. It applies specifically to natural persons under old rent contracts, excluding legal entities. The main provisions include:
– Gradual Rent Increases: Rents will increase by 15% annually for five years following the law’s enactment, giving tenants time to adapt.
– Five-Year Transition Period: Existing contracts will expire after five years, transitioning to market-based agreements to ensure predictability.
– Non-Inheritable Leases: The draft law ends the inheritance of old rent contracts, affirming that leases do not confer ownership rights.
– Cultural Exemptions: Historical buildings and religious institutions are excluded to preserve Egypt’s cultural heritage.
These provisions aim to modernize the rental sector while ensuring a balanced and phased transition.
Societal Reactions and Projected Benefits
Public reactions to the draft law have been mixed. Landlords generally support the reform, expecting better financial returns that can support property renovations and enhance investment—especially in areas like Downtown Cairo. While exact financial projections are not officially confirmed, the reforms are widely seen as a step toward revitalizing the sector.
Among tenants, responses have ranged from concern over potential financial burdens to cautious acceptance. Many fear being priced out of their homes, especially those with limited income. Others see the five-year transition period as an opportunity to adjust and renegotiate terms under clearer legal frameworks. Overall, public opinion remains divided, with both positive and negative sentiments being actively expressed.
Broader Implications and Future Outlook
This reform marks a turning point for Egypt’s real estate sector, addressing legal and economic challenges that have persisted for decades. The draft law reflects a more data-driven and inclusive policymaking approach. Still, challenges such as housing affordability remain a concern.
To address this, the government has earmarked EGP 13.6 bn in the 2025/2026 budget for housing subsidies and the expansion of social housing programs. Public awareness campaigns are also underway to educate tenants about their rights and the forthcoming changes.
As Parliament continues to deliberate, the law’s final shape will determine its impact on market stability, social equity, and sustainable urban development in Egypt.