The issue of Egypt’s Old Rent Law has witnessed significant developments, as the Cabinet, led by Prime Minister Dr. Mostafa Madbouly, announced its approval of new measures regarding compensation for old-rent tenants. The plan provides tenants with alternative residential or non-residential units instead of the expected eviction, within transitional periods extending to five or seven years according to the new details.
Among these measures, the Cabinet clarified the systems for allocating residential and non-residential units to old-rent tenants. The options include rental contracts, lease-to-own arrangements, ownership via mortgage finance, direct cash purchase, as well as installment-based ownership according to the announced conditions.
Particular emphasis was placed on the conditions required to obtain a larger replacement housing unit, alongside a mandatory requirement that tenants must vacate their currently rented property once they receive the alternative unit.
The law sets out clear conditions for the allocation of replacement apartments to old-rent tenants, including the following:
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The applicant must be a natural person.
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The applicant must be renting a residential or non-residential unit under the contract type, or have inherited tenancy rights according to the provisions of Laws No. 49 of 1977 and No. 136 of 1981.
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The applicant must be actually residing in the rented unit.
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The rented unit must not be proven to have been left vacant for more than one year without a valid reason.
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The applicant must not own another unit serving the same purpose as the original rented unit at the time of implementing Law No. 164 of 2025.
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The replacement unit and the original unit must serve the same purpose and be located within the same governorate.
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The applicant is required to submit a notarized declaration at the Real Estate Registry, committing to vacating and handing over the rented unit immediately upon allocation and receipt of the replacement unit.
These recent measures are part of the broader plan to regulate the relationship between old-rent tenants and property owners, while aiming to establish balanced solutions that address the needs of both parties.
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