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Egypt mandates 15% increase to deregulate ‘old rent’ leases

Egypt is counting down to the final end of its historic “Old Rent” system under a landmark housing law that gradually transitions rent-controlled contracts to the free market.

Under Law No. 164 of 2025, tenants across the country face a mandatory 15 percent annual rent hike starting this September, triggering a strict multi-year timeline designed to permanently return both residential and commercial properties to open-market pricing.

The new 15 percent rental adjustment

The legislation mandates that this annual increase be calculated from the baseline of the last officially approved rate. By establishing this clear escalation path, the government aims to rebalance long-standing landlord-tenant relationships while legally binding all units governed by the law.

When will old rent contracts expire?

The new amendments go beyond adjusting rental values; they establish strict transitional timelines before the old rent system is permanently abolished. According to the law:

Commercial (non-residential) units: Contracts will be fully liberated after a 5-year transitional period.

Residential units: Contracts will be fully liberated after a 7-year transitional period.

This staggered approach is designed to give tenants an adequate grace period to adjust their financial and housing situations before the old lease agreements legally terminate.

The countdown: How much time is left?

As this coming September approaches, exactly one full year will have passed since the law was first enacted.

Consequently, the timeline is now in effect:

Only 4 years remain before commercial contracts expire.

Only 6 years remain before residential contracts are fully liberated.

This looming deadline has reignited fierce debate between landlords and tenants over the future of the real estate market in the coming years.

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