Learn how Egypt’s new rent laws (Law No. 164 & 165 of 2025) terminate old rent contracts, mandate rent increases, and expand eviction grounds. Get legal advice from litigation lawyers in Cairo & Giza.
Introduction
In a significant reform to Egypt’s rental market, the government has enacted Law No. 164 of 2025 and Law No. 165 of 2025, reshaping the relationship between landlords and tenants. These laws aim to:
- Gradually terminate old rent contracts,
- Introduce rent classification committees,
- Implement progressive rent increases,
- Provide clear grounds for immediate eviction, and
- Offer state-subsidized housing or commercial units for eligible tenants.
This reform seeks to address long-standing legal and economic distortions caused by indefinite old rent agreements, restore balance to rental relationships, and protect both property owners and tenants.
1. Termination of Old Rent Contracts and Full Liberalization
The new rent laws set clear termination timelines:
- Residential leases: Expire within 7 years from the law’s effective date.
- Commercial and administrative leases: Expire within 5 years from the law’s effective date.
At the end of these periods, the rental relationship will be fully liberalized, allowing landlords and tenants to negotiate new agreements under market conditions.
2. Formation of Classification Committees
To ensure fairness in rent adjustments, each governorate will form specialized committees to classify rented areas into:
- Premium areas
- Mid-range areas
- Economic areas
The committees will assess properties based on:
- Location and infrastructure access,
- Building condition,
- Access to utilities and transport,
- Current annual rental values.
Committees must issue classifications within 3 months, extendable by 6 months by decision of the Prime Minister.
3. Gradual Rent Increases During the Transition
Before Classification is Completed
- Residential units: Rent raised to a minimum of EGP 250/month.
- Commercial & administrative units: Rent increased to 5 times the current rent.
After Classification is Completed
- Premium areas: Rent increased to 20 times current rent (min. EGP 1,000/month).
- Mid-range & economic areas: Rent increased to 10 times current rent (min. EGP 400/month).
Tenants must also pay retroactive rent differences from the law’s effective date.
Annual Rent Increases
The law further mandates a 15% annual increase during the transition period until full liberalization.
4. Immediate Eviction Grounds under the New Law
The law expands landlords’ rights to seek immediate eviction, in addition to Article 18 of Law No. 136 of 1981, in cases where:
- The tenant or successor vacates the property for more than one year.
- The tenant (or successor) owns another suitable residential or commercial property.
In such cases:
- Landlords may file a summary eviction request before the Judge for Urgent Matters.
- Tenants may still file a substantive lawsuit, but this does not suspend execution of the eviction order.
This distinction is crucial: summary eviction ensures swift enforcement, while substantive cases take longer without halting enforcement.
5. State-Provided Alternative Housing and Commercial Units
To mitigate the impact on vulnerable tenants, the law allows eligible tenants or successors to apply for state-provided housing or commercial units, either for rent or ownership.
Requirements include:
- A formal undertaking to vacate the rented property.
- Priority for low-income and vulnerable groups.
The Prime Minister will issue a decree within one month of enforcement, specifying allocation conditions and procedures.
Conclusion: Why Legal Assistance is Essential
The termination of old rent contracts, progressive rent increases, and stricter eviction measures represent a turning point in Egypt’s property and civil law system. Both landlords and tenants need to carefully understand their legal rights and obligations.
If you are facing challenges with old rent contracts, eviction disputes, or civil litigation, consulting an experienced litigation lawyer in Cairo or Giza is essential. A qualified civil law lawyer can help you:
Secure your rights under the new rent laws.
Navigate lease termination procedures.
Handle disputes over rent classification and valuation.
File or defend eviction proceedings.
Contact Us:
Email: info@lamie-law.com
Mobile: (2+) 01006650315
