The Housing Committee of the House of Representatives continues to discuss a draft law to amend certain provisions of the Old Rent Law, aiming to resolve the matter before the end of the current parliamentary session in July. Prime Minister Mostafa Madbouly referred to President Abdel Fattah El-Sisi’s directives to extend the transitional period to more than five years, with a distinction in duration between residential and commercial units. Meanwhile, the Tenants’ Union has revealed new proposals to increase rent values based on the nature of the area and standard of living, reflecting a gradual application approach that preserves the rights of vulnerable groups.
Minimum Rent Rates and Transitional Periods
Counselor Mahmoud Fawzy, Minister of Parliamentary Affairs, affirmed that both the government and parliament are working to strike a balance in reviewing the Old Rent Law draft, with a focus on national interest. He stated that the proposed law includes a minimum rent value of EGP 1,000 in cities and EGP 500 in rural areas, with old lease contracts set to expire after five years. He also noted that there are approximately 1.8 million residential units currently under the old rent system and stressed the importance of providing alternative housing for affected groups.
Proposed Rent Categories Based on Area Type
Ayman Essam, Legal Advisor to the Tenants’ Union, explained that the new proposals divide the monthly rent into three tiers:
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EGP 1,000 for upscale neighborhoods
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EGP 750 for middle-income areas
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EGP 500 for popular, working-class neighborhoods
These figures are subject to adjustment based on the economic capabilities of residents, highlighting a flexible approach that considers varying income levels.
A New Legislative Proposal to Resolve the Dispute
On another front, lawyer Sherif Abdelsalam El-Ga’ar, founder of the Union of Old Rent Property Tenants, submitted a new draft law to the Speaker of the House of Representatives. The proposal aims to end the long-standing conflict between landlords and tenants. According to the draft, the current rent would be increased by approximately sixfold, with a cap set for monthly rents as follows:
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EGP 300 for upscale areas
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EGP 200 for middle-income areas
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EGP 100 for lower-income neighborhoods
The proposal is structured to respect the social and economic disparities among tenants while gradually restoring balance to landlord-tenant relations.
Ending Contract Inheritance and Ensuring Smooth Transitions
The draft law also stipulates the termination of old rent contracts at the end of the first-generation inheritance period from the original tenant. This measure would put an end to the multi-generational inheritance of lease contracts and gradually normalize contractual relations. Additionally, it gives priority to affected tenants in acquiring state-owned housing units when the lease relationship ends by mutual consent, helping to alleviate social burdens.
This proposal comes in response to demands from affected tenants and aims to restore landlords’ rights after years of property income freeze. El-Ga’ar called for the law to be discussed in a spirit of consensus and calm, to serve the public interest and ensure societal peace.