The Story Behind the Old-Rent Law Amendments

Updated 8/9/2025 9:00:00 AM

Recently, Egypt’s House of Representatives passed long-awaited amendments to the old rent law. The bill, ratified by President Abdel-Fattah El-Sisi and published in the Official Gazette, aims to adjust the longstanding imbalance between landlords and tenants. Many tenants have been paying minimal rents under contracts that date back decades.

In this Factsheet, we explore the roots and evolution of the old-rent system and its impact on millions of families, while breaking down the most important features of the new law and its implications for both property owners and tenants.

The old-rent system began with Law No. 121 of 1947, passed under King Farouk, which froze rental terms and barred most evictions. Under President Nasser, the law was tightened to support low-income families by slashing rents. In 1981, President Sadat’s government amended the law to cap annual rent at 7% of property value and excluded luxury units. However, no major reforms followed in decades, resulting in a widening gap between controlled rent prices and actual market rates.
According to the 2017 census, approximately 1.64 million Egyptian households were living in properties rented under the old-rent system. These households included around 6.13 million individuals.
A significant concentration of households living in old-rent properties was found in four governorates, accounting for 82% of the total. Cairo ranked highest with 670,857 households (41%), followed by Giza with 308,091 households (18.7%), Alexandria with 213,147 households (12.9%), and Qalyubia with 150,961 households (9%).
Egypt had approximately 3.02 million housing units rented under the old-rent system, representing 7% of the total number of housing units nationwide. Around 69% of these old-rent units are concentrated in Cairo, Giza, Alexandria, and Qalyubia with 150,961 units (5%).
Around 36% of households pay less than EGP 50 per month as rent. 20% pay between EGP 50 and less than EGP 100, while 18% pay between EGP 100 and less than EGP 200. Meanwhile, 24% pay between EGP 200 and less than EGP 900, and only 2% pay EGP 900 or more.
The new law sets a clear timeline to phase out the old-rent system. Contracts for commercial units will expire after five years, while residential contracts will be terminated after seven years. Once these periods end, landlords will legally be able to reclaim their properties.
To bridge the gap between outdated rents and today’s market prices, the law mandates significant increases. For residential units, rent will rise 20 times in prime areas (minimum EGP 1,000), 10 times in middle-income areas (minimum EGP 400), and 10 times in economic areas (minimum EGP 250). For commercial units, rent will increase fivefold, followed by a 15% annual increase during the transition.

By: Amina Hussein