The New Rental Law No. 164 of 2025
The New Rental Law No. 164 of 2025
Law No. 164 of 2025, also known as Egypt's New Rental Law, was approved in August 2025 to gradually phase out the old, below-market "old rent" system by establishing a 7-year and 5-year transition period for residential and non-residential leases, respectively. Key components include yearly rent increases, minimum rent values based on zoning, and tenant mitigation options like government housing assistance. The law aims to create a fair balance between tenants and landlords, modernize the rental market, and encourage investment by addressing long-standing disputes over outdated rental values and fixed-rate leases.
Key Provisions
Lease Termination:
Old rent contracts for residential units will terminate within a maximum of seven years from August 5, 2025, and for non-residential units within five years.
Rent Increases:
Rents will increase by 15% annually during the transition period.
Minimum Rent Values:
Properties are classified into three zones (premium, mid-range, economic), with minimum monthly rent values established to reflect market conditions.
Tenant Mitigation:
Tenants and their heirs can apply for housing assistance from the government, with low-income tenants prioritized.
Eviction Scenarios:
Landlords can seek eviction if a property has been closed for over a year or if a tenant acquires another suitable property.
Scope:
The law primarily applies to residential units and non-residential units leased by natural persons under the Old Rental Laws (Law No.49 of 1977 and Law No. 136 of 1981).
Impact and Goals
Phasing Out Old Rent:
The law addresses the deep-rooted "old rent" system, which fixed rents at below-market rates for decades, creating significant landlord-tenant conflict.
Market Modernization:
It seeks to modernize the rental market by updating outdated values and encouraging real estate investment.
Legal Balance:
The legislation aims to establish a fair balance between protecting tenants and upholding landlords' property rights.
Economic Improvement:
By promoting a balanced and fair rental environment, the law is intended to have a positive impact on the country's economic situation.