<h3 dir="ltr" style="text-align: justify;">Introduction</h3>
Law 136/1981, known as the old rent law, has long shaped residential and commercial housing markets in Egypt, but the recently enacted Law 164/2025 introduces major reforms to the rental and housing framework, signaling a recalibration of property rights and tenant protections. This commentary looks briefly at the old rent regime, analyzes the adjustments made by the new law, and assesses their implications for Egypt&rsquo;s housing security. Due to length constraints, this commentary will focus only on changes affecting previously rented housing units.
<h3 dir="ltr" style="text-align: justify;">Origins and Context of the Old Rent Law</h3>
Implemented in 1981, Law 136 aimed to stabilize residential rents by capping them at roughly 7% of the property&rsquo;s value, thereby safeguarding tenants against inflation and economic instability. Over the decades, however, landlords faced difficulties maintaining properties due to meager returns, resulting in the widespread degradation of rental housing stock. Non-residential rents were similarly capped, deterring commercial property markets and economic vibrancy (Supreme Constitutional Court [SCC], 2024; Abd el Razek, 2025).
An SCC ruling issued in 2024 radically changed this legal landscape by declaring that indefinite rent freezes violated constitutionally protected property rights. This judicial decision compelled policymakers to overhaul the rental system. Law 164/2025, ratified by President Abdel Fattah El-Sisi in August 2025, aimed to restore balance between tenants&rsquo; rights and landlords&rsquo; economic interests (The Egyptian Gazette, 2025).
<h3 dir="ltr" style="text-align: justify;">Mechanisms Balancing Tenants and Landlords</h3>
Law 164/2025 provides for the termination of existing old rent contracts within seven years for residential properties and five years for commercial units. The law sets a minimum rent differentiated by zone and property class: EGP 1,000 monthly for premium urban areas, EGP 400 for middle-income zones, and EGP 250 for so-called economic areas, or low-income zones. Additionally, landlords can increase rents by 15% annually (Law 164/2025; Shehata &amp; Abdeldayem, 2025).
The law also empowers courts to expedite eviction orders, specifically where units remain vacant or tenants possess alternative properties suitable for housing. From a landlord&rsquo;s perspective, this will expedite asset turnover, resolving one chronic barrier to reinvestment. For displaced tenants, Law 164 offers government-subsidized housing options. The Ministry of Housing pledged that no tenant would be left without accommodation, indicating a social safety net component (Yasser, 2025; Ellamie, 2025).
The Cabinet issued Decree 2789/2025 to operationalize Law 164/2025 which establishes local survey committees to classify residential rental areas as premium, medium, or economic using a points-based system based on building quality, infrastructure, and rent values. While the decree provides administrative clarity, mandates conflict-of-interest disclosures, and introduces data-driven classification, practical challenges remain. The committees were given just three months to complete their work, which may test their capacity given the extensive geographical areas they must survey and the need to coordinate with multiple agencies such as the Ministry of Housing, the Egyptian General Survey Authority, and the Real Estate Tax Authority. Additionally, the decree does not sufficiently address how the committees&rsquo; findings will be monitored or enforced.
<h3 dir="ltr" style="text-align: justify;">Broader Implications and Critiques</h3>
The new law reflects a broader policy shift from guaranteed tenure to market-based housing. Proponents argue that these reforms will motivate landlords to maintain rental stock and attract new investment. Revitalizing the rental market could also reduce informal rental arrangements and improve housing quality standards (Youssry Saleh and Partners, 2025; Riad and Riad Law Firm, 2025).
In implementing Law 164/2025, the Ministry of Housing, Utilities, and Urban Development has announced initiatives to allocate state-built social housing apartments specifically for old rent tenants. Official statements indicate that priority will be given to vulnerable groups such as elderly tenants, low-income families, and households with special needs (Yasser, 2025). To facilitate the process of unit allocation for affected tenants, the Ministry of Housing has launched an electronic platform, enabling them to apply for alternative housing units online (Kamel, 2025).
In parallel, several pilot programs operating as public&ndash;private partnerships have been launched to expand the supply of low-cost, higher-quality rental housing in urban centers most affected by rent reforms. To facilitate a smoother transition, the ministry will place relocated households in new units governed by updated rental frameworks and supported by rent subsidies and government-backed guarantees (Shehata &amp; Abdeldayem, 2025; The Egyptian Gazette, 2025).&nbsp;
Nonetheless, the pace and adequacy of these interventions remain sources of concern. Critics have highlighted the vulnerability of long-standing low-income tenants, especially elderly residents, who may struggle with rent increases or face eviction despite government pledges, in particular while affordable rental options remain scarce. Moreover, the reforms&rsquo; success hinges on the effective monitoring of rent setting, eviction processes and due compensation, and property maintenance. Without rigorous oversight, unintended consequences could entrench inequalities or foster informal market circumvention (Egyptian Initiative for Personal Rights [EIPR], 2025).
Furthermore, delays in delivering previously pledged social housing units and the fact that old rent tenants often fall outside the scope of these programs have sparked growing concern among civil society organizations and tenant advocates. This situation threatens to exacerbate social inequalities as affected tenants may be forced to move into informal settlements or overcrowded conditions, undermining efforts toward equitable urban development and social stability. Civil society actors emphasize the urgent need for the accelerated delivery of units, expanded coverage of social housing programs, and integrated policies that protect tenants while ensuring adequate, affordable housing for all Egyptians. The government must ensure stronger coordination across ministries, local authorities, and civil society partners to prevent vulnerable tenants from falling through administrative or logistical cracks during the implementation of reforms (EIPR, 2025; Ezzeldin, 2025).
<h3 dir="ltr" style="text-align: justify;">The Way Forward: Balancing Justice and Affordability</h3>
Looking ahead, Egypt faces the complex challenge of equitably navigating between property rights and tenure security amid the crisis in housing affordability. Effective rent reform must adopt a holistic and integrated approach (Alternative Policy Solutions, 2025a). Policymakers should standardize rent classification nationally and draw inspiration from successful experiments elsewhere, such as the Austrian cost-recovery model. The government should diversify housing supply by promoting mixed-income projects and cooperative housing models through public-private partnerships that prioritize equity and reinvestment. Cities like Vienna, for example, apply socially mixed housing strategies via public-private partnerships to promote mixed-income communities and reinvest rent revenues into affordable housing. Policymakers should establish institutional safeguards and create multi-stakeholder oversight boards that include tenant unions, local councils, and civil society organizations to ensure enforcement and prevent executive overreach. The government should build a centralized digital rental database that connects property data with income and subsidy information. Policymakers should also strengthen tenant empowerment through literacy programs and housing mediation centers in partnership with NGOs to support dispute resolution and protect vulnerable groups. These combined measures would turn Egypt&rsquo;s rent reform into a socially grounded, transparent, and inclusive framework that advances sustainable urban development and social equity (Alternative Policy Solutions, 2025a &amp; 2025b).
<h3 dir="ltr" style="text-align: justify;">Conclusion</h3>
The amendment of the old rent regime by Law 164/2025 marks a significant shift in the country&rsquo;s rental housing framework. To avoid negative outcomes, the process of rent reform must include clear implementation guidelines, transparent communication, and concrete social protection measures to build trust among property owners and tenants. Crucially, it must also involve local participation from community representatives, tenant unions, and civil society in overseeing rent classification committees, monitoring compliance, and addressing grievances. These reforms seek to foster accessible, fair, and sustainable housing outcomes that enhance living conditions and strengthen community stability.
<hr>
References
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Alternative Policy Solutions. (2025a). Rethinking rent reform: Can Egypt&rsquo;s new old rent law balance justice and social equity?<a href="https://aps.aucegypt.edu/en/articles/1493/rethinking-rent-reform-can-egypts-new-old-rent-law-balance-justice-and-social-equity"> </a>American University in Cairo. <a href="https://aps.aucegypt.edu/en/articles/1493/rethinking-rent-reform-can-egypts-new-old-rent-law-balance-justice-and-social-equity">https://aps.aucegypt.edu/en/articles/1493/rethinking-rent-reform-can-egypts-new-old-rent-law-balance-justice-and-social-equity</a>
Alternative Policy Solutions. (2025b). Unlocking affordability and secure tenure for housing in Egypt [Policy paper]. American University in Cairo. https://aps.aucegypt.edu/en/articles/1527/policy-paper-unlocking-affordability-and-secure-tenure-for-housing-in-egypt
Cabinet of Ministers Decree No. 2789 of 2025 (concerning the formation and operation of survey committees for areas with rented residential units), al-Jarida al-Rasamiya, No. 33 (bis A), 18 Aug. 2025, pp. 20&ndash;24 (Egypt).
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Diwan Al Omran. (2025, August 4). El-Sisi ratifies the old rent law. https://diwanalomran.com/en/%D8%A7%D9%84%D8%B3%D9%8A%D8%B3%D9%8A-%D9%8A%D8%B5%D8%AF%D9%82-%D8%B9%D9%84%D9%89-%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%A7%D9%84%D8%A7%D9%8A%D8%AC%D8%A7%D8%B1-%D8%A7%D9%84%D9%82%D8%AF%D9%8A%D9%85/
Egyptian Initiative for Personal Rights. (2025, May). Joint statement: Reforming Egypt&rsquo;s old rent law in light of the constitutional court ruling.. Proposals to safeguard the right to housing [Press release]. https://eipr.org/en/press/2025/05/joint-statement-reforming-egypt%E2%80%99s-old-rent-law-light-constitutional-court-ruling
Ellamei, H. (2025). Termination of old rent contracts in Egypt | New rent laws 2025.<a href="https://lamie-law.com/termination-of-old-rent-contracts-gradual-rent-increases-and-immediate-eviction-cases-in-egypt/"> Lamie and Partners Law Firm. https://lamie-law.com/termination-of-old-rent-contracts-gradual-rent-increases-and-immediate-eviction-cases-in-egypt/</a>
Ezzeldin, I. (2025, July 10). Millions at risk of eviction as Egypt overhauls rent laws.<a href="https://timep.org/2025/07/10/millions-at-risk-of-eviction-as-egypt-overhauls-rent-laws/"> Tahrir Institute of Middle East Policy. https://timep.org/2025/07/10/millions-at-risk-of-eviction-as-egypt-overhauls-rent-laws/</a>
Kamel, H. (2025, October 3). Housing: Launch of the unified electronic platform for citizens subject to the old rent law. National Media Authority. https://www.maspero.eg/economy/2025/10/03/894636/
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Shehata, M., &amp; Abdeldayem, E. (2025, September 28). Egypt&rsquo;s 2025 rent reform unveiled: New era for tenants and landlords. Matouk Bassiouny Law Firm.<a href="https://www.facebook.com/MatoukBassiouny/posts/in-a-giant-leap-forward-and-pivotal-awaited-move-to-reshape-the-egyptian-real-es/1406169204842951/"> </a>https://matoukbassiouny.com/egypts-2025-rent-reform-unveiled-new-era-for-tenants-and-landlords/?fbclid=IwY2xjawNhrLhleHRuA2FlbQIxMAABHhQsO3u-dLnhOrhrP90JTLEEiSqRyWLlOoNWyXIHgcUPozwQEClJKBZxihT1_aem_1ghmN01DmVW8UHBQMj8MYQ
Supreme Constitutional Court of Egypt, case no. 24, session of 9 Nov. 2024, year 20. <a href="https://www.sccourt.gov.eg/SCC/faces/Rules_Html/15196_20_24_1_2.html">https://www.sccourt.gov.eg/SCC/faces/Rules_Html/15196_20_24_1_2.html</a>
Riad and Riad Law Firm. (2025, October 8). A new legal framework for real property rentals in Egypt.<a href="https://riad-riad.com/a-new-legal-framework-for-real-property-rentals-in-egypt/"> https://riad-riad.com/a-new-legal-framework-for-real-property-rentals-in-egypt/</a>
The Egyptian Gazette. (2025, July 2). Parl&rsquo;t passes final version of new rent law.<a href="https://us.sis.gov.eg/Story/209605/Parliament-Passes-Final-Version-of-New-Rent-Law-Aimed-at-Rebalancing-Landlord-Tenant-Relations?lang=en-us"> </a>https://egyptian-gazette.com/egypt/local/parlt-passes-final-version-of-new-rent-law/
Yasser, Y. (2025, Aug 6). Egypt says no tenant will be left without a home. Amwal Al Ghad. https://en.amwalalghad.com/egypt-says-no-tenant-will-be-left-without-a-home/
Youssry Saleh and Partners. (2025, August 3). Egypt&rsquo;s new rental law: A courageous move towards reform.<a href="https://youssrysaleh.com/en/egypts-new-rental-law-a-courageous-move-towards-reform/"> https://youssrysaleh.com/en/egypts-new-rental-law-a-courageous-move-towards-reform/</a>

آراء

Commentaries

حماية اجتماعية

Social Protection

الإسكان

Housing

السياسات الاقتصادية

Economic Policies

التنمية الشاملة

Inclusive Development

الإيجار القديم؟ مشكلة جديدة! من الحيازة الآمنة  إلى عدم اليقين في الاسكان

Old Rent? New Problem! From Secure Tenure to Housing Uncertainty

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