Egyptian Parliament’s Housing Committee approved on June 11 a proposed amendment that would see tenants, who signed long-term leases before 1996 and are using their properties for non-residential purposes, pay significantly higher rents, Invest-Gate reports.
If passed in a final vote by the general assembly, the modification would make these tenants be subject to an instant five-time surge in rent and a 15% annual hike for five consecutive years, according to a recently released statement.
In all cases, under the new bill, such contracts must be terminated by law, without the need for any action or judgment, by the end of this period, after which the relationship will be governed by the civil code, the statement added, noting, “This both goes in line with the constitution and helps landlords and tenants reach the common ground at last.”
In October 2017, Egypt’s Supreme Constitutional Court (SCC) ruled that Article 18 of Law No. 136/1981 is unconstitutional, emphasizing that contracts signed since the announcement shall be nullified immediately.