Legal Pulse | The Old Rent Law Reform: A Legal Balancing Act Between Ownership Rights and Social Stability

Nour, Ali and Partners
May 11
2 min read

! Legal Context: This comes after the 2024 Supreme Constitutional Court ruling that declared the indefinite nature of these leases unconstitutional, reinforcing the need to balance ownership rights with social fairness.

Supreme Court Sets Urgent Deadline: Parliament Pressed to Resolve Decades-Old Rent Law Crisis

For decades, Egypt’s Old Rent Law has been a cornerstone of heated debate, a law that allowed tenants to live in properties for life (and beyond), paying symbolic rents that barely cover maintenance costs. In many cases, leases were passed down across generations, freezing landlords' rights and limiting property utility for over 70 years. Background: What Is the “Old Rent Law”?

Introduced through a series of laws in the 1950s–1980s, the rent control regime froze rental prices at the rate agreed at the time of contract, often just a few pounds per month, never to be revised.

These contracts were unlimited in duration and inheritable, meaning a tenant’s children and even grandchildren could remain in the unit indefinitely.

Millions of units, both residential and commercial, across Cairo and other governorates are still subject to these frozen terms.

The Challenge Today

Complex eviction scenarios, with millions of long-term tenants legally occupying valuable real estate for nominal fees, some paying less than EGP 10/month.

Major market distortions, reducing available rental supply and discouraging investment in older neighborhoods.

Severe injustice to property owners, who cannot use or benefit from their own properties

From the Owner’s Perspective (Lessor)

Fair Market Value:

Owners have long been tied to fixed, outdated rent amounts, often just a few pounds a month. The proposed changes aim to correct this by increasing rental values up to 20x their current rate for residential units.

Gradual Recovery:

Non-residential leases may see 5x rent increases with 15% annual increments, finally allowing owners to benefit from the real value of their properties.

Clear Eviction Timeline:

Interest-based groups and forums foster connection among people with shared goals or hobbies, enriching social interactions.

From the Tenant’s Perspective (Lessee)

Security vs. Reality:

For many tenants, especially those on fixed incomes, the jump in rent poses a financial burden. A five-year cushion may help, but uncertainty remains.

Eviction Concerns:

After the 5-year period, tenants may be asked to vacate, though proposals are underway to prioritize affected families for government-supported housing alternatives.

Legal Rights in Transition:

The reforms are driven by a 2024 Supreme Constitutional Court ruling declaring parts of the existing law unconstitutional. But the practical impact on long-term tenants remains a legal and social challenge. What Comes Next? This legislative shift could finally rebalance a decades-old dispute, but not without challenges.

At Nour, Ali & Partners, we continue to monitor the draft law and advise clients on how to prepare for what’s ahead. Keep your eyes on our Legal Pulse series at Nour, Ali & Partners for expert insights, practical guidance, and timely updates as the reform unfolds.