The old rent law in Egypt has approved a set of regulations and mechanisms that determine the fate of old contracts, balancing the interests of both parties after years of debate. According to the law, residential lease contracts subject to it will end seven years after its implementation date, while non-residential leases for individuals will end after five years unless mutually agreed otherwise. The law came into effect on August 5, with the first rent increase to be collected starting September 1. Committees formed by the governor will classify residential areas into premium, medium, and economic zones based on geographic location, building type, unit size, available facilities, road networks, and average rental values according to the real estate tax law. These committees must complete their work within three months, extendable once by the Prime Minister’s decision, with their decisions published officially.

Rent values for residential properties will increase immediately upon implementation: in premium areas up to twenty times the current rent with a minimum of 1,000 EGP monthly; in medium areas ten times with a minimum of 400 EGP; and in economic areas ten times with a minimum of 250 EGP. Until the committees finish, tenants pay a temporary unified amount of 250 EGP, with the difference payable later in installments equal to the due period. For non-residential leases, the rent increases fivefold with an annual 15% periodic increase. The law obliges tenants to vacate the leased property at the end of the term and allows landlords to request immediate eviction if the unit is left closed for over a year without justification or if the tenant owns an alternative usable unit. Eviction decisions are issued by the competent court, preserving the landlord’s right to compensation if applicable.

Tenants have the right to appeal without suspending eviction. The law also grants tenants or their successors the right to request alternative residential or non-residential units from state-available properties, either for rent or ownership, conditioned on vacating the old unit upon allocation. The state must prioritize allocations approved by the Cabinet, favoring original tenants or their spouses, with allocation to be completed within one year before the transitional period ends. Tenants also have priority for future state-offered units upon official application and vacating declaration, considering the original unit’s location.