مصر: «الإيجار القديم» يدخل حيز التنفيذ

The official newspaper in Egypt published, in its latest issue, President Abdel Fattah El-Sisi's decision to ratify the old rental law, after it was approved by the House of Representatives. With the publication of the old rental law in the official newspaper, it will come into effect starting from the day following its publication.

At the beginning of July, the Egyptian House of Representatives officially approved the draft law submitted by the government regarding the amendment of the old rental law, in an attempt to address the legal and economic situations related to properties rented under the old rental system.

The new law stipulates a transitional period before the termination of old rental contracts, set at seven years for residential units and five years for units rented to individuals for non-residential purposes, in preparation for liberalizing the rental relationship between the owner and the tenant.

At the end of the transitional period, the tenant is obligated to vacate the rented unit and return it to the owner, with the confirmation of the cancellation of all laws regulating old rentals after this period, so that any new rental contract will be subject to the provisions of civil law, ensuring freedom of contract between the two parties.

The amendment includes a review of the rental value of the rented units, according to the old law, where residential units will see an increase of up to 20 times the current value in distinguished areas, with the increase not being less than 1,000 Egyptian pounds per month.

In medium areas, the increase is set at a minimum of ten times, with a minimum of 400 pounds, while in economic areas, it will rise to at least 250 pounds.

As for the places rented to individuals for non-residential purposes, the rental value will be raised to five times the current value.

The law also stipulates the application of an annual periodic increase during the transitional period of 15% on the rental value, whether for residential or non-residential units.

Egyptian Housing Minister Sherif El-Sharbin confirmed that the state will not evict tenants affected by the old rental law. He explained that a digital platform will be launched to register tenant data and study it to provide the necessary support to them. He indicated that a fund will be established to support tenants, similar to the social housing fund, to provide suitable housing solutions for them.