By [NASHWA HAMDY] Attorney-at-Law
Background: The Old Rent Law
Egypt’s “Old Rent Law” refers to legislation regulating long-term leases signed before 1996—particularly Law No. 136 of 1981 and Law No. 49 of 1977—which provided tenants with lifetime occupancy rights and minimal rent increases. This law had been a point of contention for decades between landlords and tenants due to its highly protective stance toward tenants.
In April 2025, Egypt’s Supreme Constitutional Court ruled that indefinite leases under the old law were unconstitutional, setting the stage for comprehensive legislative reform.
Key Changes Under the 2025 Amendments
Fixed Transitional Periods
- Residential leases: 7 years from the law’s effective date.
- Non-residential leases (shops, offices, clinics): 5 years.
Significant Rent Increase
- Rent will be raised 20 times the current amount (minimum EGP 1,000 in cities, EGP 500 in villages).
- An annual 15% increase will apply throughout the transitional period.
Lease Termination
- After the transitional period ends, tenancy automatically expires.
- The landlord can apply for a summary eviction order without a lengthy civil case.
Restricted Inheritance of Lease Rights
- Only first-degree relatives who resided in the unit with the original tenant can continue the lease during the transitional period.
- Lease cannot be passed down indefinitely.
How Do These Changes Affect Foreign Residents in Egypt?
Inclusion in the Amendments
The amendments apply to all tenants, including non-Egyptians, provided their leases fall under the “old rent” regime (i.e., pre-1996 contracts that did not follow free-market rental terms).
Foreign tenants do not have a separate legal status under the rent laws unless their contracts explicitly define otherwise. Thus
- If you are renting under an old-style lease: the new 7-year transition and rent hike rules apply to you.
- If your lease was signed post-1996 – you are not affected by these amendments.
Restrictions on Lease Renewal
Foreign nationals are not entitled to automatic lease extensions after the 7-year period ends. Renewal would be possible only through a new contract agreed upon with the landlord—typically at market rates.
Eviction Protection
There is no automatic protection against eviction once the transitional period ends. Foreign tenants should
- Negotiate renewal terms early, or
- Prepare to vacate the property, unless otherwise agreed.
Access to Government Housing Programs
Government-sponsored “alternative housing” or relocation support is currently prioritized for Egyptian citizens, especially vulnerable groups. Foreign residents are not explicitly included in this program unless by exception or diplomatic arrangement.
Legal Recommendations for Foreign Tenants
- Review your contract: Determine if you are under a fixed-term or legacy lease.
- Negotiate early: Approach your landlord to discuss renewal well before the transitional period ends.
- Avoid informal arrangements: Ensure any agreement is in writing and properly registered or notarized.
- Seek legal advice: Especially if facing eviction or unreasonable rent increases.
Egypt’s 2025 Rent Law reform is a major legal turning point that aims to rebalance landlord-tenant relations. While the transitional period offers time to adjust, foreign residents must be proactive in securing their housing future. The era of perpetual tenancy has legally ended—and whether you’re an Egyptian or expatriate, a new contractual model will govern all leases by the end of this transition.