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. Law No. 164 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.

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:

• Gradual Increase: Rent is no longer frozen; it must increase by 15% each year until the end of the transition.
• Final Termination: In 2032 (7 years from the law's effective date), the property must be returned to the landlord unless a "New Rent" market contract is signed.
• Status Regularization: Tenants had until April 2026 to apply for social housing allocations if they meet low-income criteria during this transition.

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"

The 2025 reforms introduced specialized "Urgent Courts" to handle cases of lease expiration. 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.

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.