Egypt Landlord-Tenant Laws: The 2026 Old Rent Reform

Egypt's real estate market is split between the socialist-era "Old Rent" system and the liberalized "New Rent" system. The 2025 Reform Package (Laws No. 164 and 165 of 2025), published in the Official Gazette (Issue No. 31 Bis) and effective 5 August 2025, has finally established a binding statutory timeline for the absolute phasing out of rent control and streamlined eviction procedures.

1. The Dual Market System

• "Old Rent" (Pre-1996): Historically frozen rents that could be inherited indefinitely. These are now subject to the 7-year phase-out rule.
• "New Rent" (Post-1996): Governed by the Egyptian Civil Code. Landlords and tenants have complete freedom to set rent, duration, and escalation clauses.

2. The 2026 Old Rent Transition

If you own a property currently occupied by an "Old Rent" tenant:

• Initial Rent Adjustment: Effective August 2025, rents are immediately adjusted based on zonal classification:
  • Premium Zones: 20 times the current legal rent (Minimum EGP 1,000/month).
  • Middle-Income Zones: 10 times the current legal rent (Minimum EGP 400/month).
  • Economic Zones: 10 times the current legal rent (Minimum EGP 250/month).
• Annual Increase: Following the initial adjustment, rent increases by 15% annually on a compounded basis until the end of the transition.
• Final Termination: All residential 'Old Rent' contracts automatically terminate on August 5, 2032 (7 years from the law's effective date), and the property must be returned to the landlord unless a "New Rent" market contract is signed.
• Social Housing: Eligible low-income tenants were granted a 3-month window starting October 1, 2025 (ending January 1, 2026) to apply for alternative state-provided housing allocations.

3. "New Rent" Market Rules

For all modern primary residence leases:

• Registration: It is strongly recommended to authenticate the lease at the Shar Al-Akari (Notary Public). This allows the landlord to use the contract as an execution deed for speedier evictions.
• Inflation Clauses: Most contracts include an annual escalation of 10-15%.
• Currency: While often indexed to USD or EUR in text, payments must strictly be in Egyptian Pounds (EGP) for legal validity.

4. Eviction and "Urgent Courts"

Law No. 165 of 2025 (amending Law No. 4 of 1996) introduced Article 2 bis, which grants landlords the right to obtain an immediate eviction order from the Judge of Interim Matters (Urgent Court). If a fixed-term "New Rent" contract ends, or once the 7-year "Old Rent" transition period lapses, landlords can secure expedited eviction orders far more quickly than in the past, provided the contract is registered and authenticated at the Notary Public.

5. Deposits and Maintenance

• Deposits: Typically 1 to 2 months' rent.
• Maintenance: Unless otherwise specified, the landlord handles structural integrity and major utility systems. Tenants are responsible for minor repairs and daily upkeep.