During much of the twentieth century, the laws of “old rent” of Egypt have limited rentals to levels that now seem obsolete. In neighborhoods like Manial, families Pay as little as EGP 8 (USD 0.16) per month for spacious apartments, other tenants pay As low as EGP 10-30 (USD 0.20-0.61) per month for apartments and properties in luxury locations such as Heliopolis and Zamalek.
The prices were established by contracts dating from the 1960s and then were reinforced under law no. 136 or 1981, which layer dress Annual payments no more than seven percent of the value evaluated at the time of the firm.
At the end of 2024, the Supreme Constitutional Court of Egypt ruled that the Fixed Rental Provisions of the 1981 law were not stittable and tidy Parliament to amend the law at the end of the current legislative session, establishing the deadline in June 2025.
As the Parliament of Egypt approaches a critical term, millions of tenants and owners have been thrown into a state of uncertainty. While the owners see a long -awaited opportunity to claim control over their properties or ensure higher rentals, tenants fear Displacement or Lack of housing.
“The new law must create a balance between the owners and tenants,” Mohamed Attia al-Fayoumi, president of the Housing Committee of Parliament, saying. “Income reform will be an important priority.”
The Prime Minister of Egypt, Mostafa Madboulny, resonated Al-Fayoumi’s opinion, saying that all options are being considered to balance the rights of owners and tenants.
Accordance For the Supreme Constitutional Court, freezing rentals at obsolete rates violated property rights and failed Reflect economic realities, particularly in the midst of growing inflation and a pound depreciation.
Althegh, these laws have protected the tenants of the sudden rentals of rent and eviction, they have also discouraged Real estate investment as owners, unable to increase income or recover properties, observed the value of its eroded assets with inflation and devaluation of currencies, contributing to a chronic housing shortage.
With only three months, removing before the deadline of the Court, the Government has not yet presented a draft amendment to Parliament. However, if the government does not act, the Parliament will begin Proposed review Of its members, several or that are already under discussion.
Between The proposals It is a transition period of five to ten years of which the interest would increase by 15 percent per year, offering the tenants to adapt while providing owners a gradual return to market rates. Another proposal urges the creation of a fund to help vulnerable tenants to buy new homes, an effort destined to prevent mass evictions. In addition, provisions are being discussed to allow owners to claim vacant or “closed” apartments, a movement destined to relieve the country in housing scarcity.
As for tenant’s defense groups, they have callous For the increases in phases, suggestion of an initial increase of five times followed by annual increases, to avoid sudden clashes for those who have trusted the old system.
The Court’s decision follows a series of recent reforms aimed at non -residential units. According to Law No. 10 of 2022, the rental rents leased to legal entities, such as companies and government offices, have increased by 15 percent per year since 2022, with the owners established in recover Total control by 2027. However, these changes He did not approach The much larger residential tenant group is still protected by old laws.
The old rental laws of Egypt affect Hundreds of thousands of apartments and millions of people. Any abrupt could trigger social disturbances. However, maintaining the risk of status quo further distorting the real estate market and discouraging very necessary investment.
