Egypt has mandated a 15% [1] annual rent increase to deregulate the nation's historic “Old Rent” lease system.
This reform targets decades of market distortion by shifting rental contracts from frozen, legacy rates toward a deregulated free-market framework. The move seeks to balance property rights for landlords with social justice for tenants.
President Abdel Fattah El-Sisi signed the legislation, known as Law No. 164 of 2025 [2]. The law entered into force in September 2025 [2], with the mandatory 15% [1] annual hike applying to leases starting from that month.
The “Old Rent” system created a long-standing imbalance in the Egyptian real estate market. Under previous regulations, many tenants paid nominal fees that did not keep pace with inflation or property values. This resulted in landlords receiving minimal income from properties while tenants maintained long-term security at stagnant prices.
By implementing a consistent annual increase, the government intends to gradually phase out these distortions. The transition is designed to encourage the release of housing stock back into the open market, a process that has been stalled for years due to the lack of incentive for landlords to reclaim their properties.
Law No. 164 of 2025 [2] establishes the legal mechanism for this transition. The 15% [1] increase serves as a bridge to move these contracts toward market-rate values without causing an immediate, destabilizing shock to the rental population. The policy applies nationwide, affecting both residential and commercial leases governed by the old system.
“Egypt has mandated a 15% annual rent increase to deregulate the nation's historic “Old Rent” lease system.”
This legislation represents a significant shift in Egypt's social contract regarding housing. By dismantling the 'Old Rent' system, the government is prioritizing the restoration of property values and market efficiency over the preservation of legacy subsidies. While the gradual 15% increase is intended to mitigate hardship, the policy effectively ends a decades-old era of rent control, likely increasing the availability of rental properties while raising the cost of living for long-term tenants.
