Egyptian President Abdel Fattah al-Sisi ratified Law #164 of 2025, which regulates rent laws and reorganizes the relationship between landlords and tenants, after it was approved by the House of Representatives.
The law specifies how the monthly rent amount will be calculated after the law is implemented. The law classifies areas into three categories: “distinguished,” “medium,” and “economic.”
Article four of the law stipulates that, starting from the due date of the monthly rent following the date this law comes into effect:
- The legal rental value of residential rental properties in distinguished areas will be 20 times the current legal rental value, with a minimum of LE 1,000.
- The legal rental value of residential rental properties in medium areas will be 10 times the current legal rental value, with a minimum of LE 400.
- The legal rental value of premises rented for residential purposes in economic areas will be 10 times the current legal rental value, with a minimum of LE 250.
The article also stipulates that “The tenant or whoever the lease contract has been extended to, as the case may be, shall be obligated to pay the monthly rent following the effective date of this law, amounting to LE 250 per month,” until the inventory committees complete their work.
The tenant, or whoever the lease contract has been extended to, as the case may be, shall be obligated, starting from the day following the publication of the decision of the competent governor, stipulated in the last paragraph of Article III of this law, to pay the differences due, if any, in monthly installments over a period equal to the period for which they are due.
How do you calculate your monthly rent?
The committees that will determine the nature of the areas on which the rental value of units is determined have not yet been formed.
However, if one lives in a distinguished area and rent a unit under the old rental system, the monthly rent will be LE 1,000, with the rental value increasing by 15 percent each year.
For those who live in a medium area and rent a unit under the old rental system, the monthly rent will be LE 400, with the rental value increasing by 15 percent each year.
And those who live in an economic area and rent a unit under the old rental system, the monthly rent will be LE 250, with the rental value increasing by 15 percent each year.
Monthly rent due date
As of the monthly rent due date following the effective date of this law, the legal rental value of premises rented to natural persons for non-residential purposes shall be five times the current legal rental value, as stipulated in Article Five of the law.
The rental value specified in this law shall also be increased periodically by 15 percent annually.
The law stipulates the formation of a committee by the governor to determine the type of unit, whether distinguished, medium, or economic.
Article One of the law stipulates that the provisions of this law apply to “Places rented for residential purposes and places rented to natural persons for purposes other than residential purposes in accordance with the provisions of Laws #49 of 1977 regarding the rental and sale of premises and regulating the relationship between landlord and tenant, and Law #136 of 1981 regarding some special provisions regarding the rental and sale of premises and regulating the relationship between landlord and tenant.”
According to the latest census issued by the Central Agency for Public Mobilization and Statistics in 2017, approximately 1.64 million families, representing 6.13 million individuals, live in rental units under the old rental system.
Edited translation from Al-Masry Al-Youm
