The Egyptian Constitution, under Article 123, grants the
President 30 days from the date of receiving a draft law to either approve or
reject it. If no action is taken within this period, the law is considered
effective by force of the Constitution and must be published in the Official
Gazette. The deadline expires tomorrow, Sunday, August 3, 2025, which means the
law will come into effect upon official publication.
The legislation has sparked widespread debate following
parliamentary approval of the government-proposed amendments concerning
residential rental contracts. The draft aims to restore balance between
landlords and tenants in response to a ruling by the Supreme Constitutional
Court. The law has raised concern among tenants, with growing appeals for the
President not to ratify it. Legal experts and public figures have also called
for the removal of the clause mandating eviction after seven years for
residential units and five years for commercial ones.
Landlords and tenants are now anticipating the end of the
constitutional period, which is expected to mark the beginning of the law’s
enforcement and implementation.
The temporary rent adjustment will take effect upon
enactment of the law, setting a minimum monthly rent of EGP 250 for all
residential units governed by the old system. This interim rate will remain in
effect until inventory and classification committees complete their work in
each governorate.
The classification committees are required to complete their
tasks within three months from the law's effective date. A one-time extension
of the same duration is allowed if necessary. The final zoning and inventory
results will be published in the Egyptian Gazette.
The rent valuation process will divide areas into three
categories based on the committees’ assessments:
Premium areas: Rent calculated at 20 times the current
amount, with a minimum of EGP 1,000 per month.
Middle-income areas: Rent calculated at 10 times the current
amount, with a minimum of EGP 400.
Economic areas: Rent calculated at 10 times the current
amount, with a minimum of EGP 250.
The transitional measures include settling accumulated rent
differences through monthly installments. A compound annual increase of 15
percent will be applied for seven years on residential units and five years on
non-residential units.
The scope of the law includes both residential and
non-residential units, such as commercial, administrative, and professional
properties. The law applies to lease contracts signed under Law No. 49 of 1977
and Law No. 136 of 1981. Lease terms are set at seven years for residential
units and five years for non-residential units.
The rent structure requires tenants to pay EGP 250 per month
temporarily until the classification process is finalized. For non-residential
units, the rent will be set at five times the current value, with a 15 percent
annual compound increase.
The immediate eviction clause allows landlords to submit a
request to a temporary matters judge under the following conditions:
The unit has been closed and unused for more than one year.
The tenant owns another unit suitable for residence or
business.
The unit is used illegally or its use has been changed
without approval.