President Abdel Fattah El-Sisi has issued Law No. 164 of 2025 concerning certain provisions related to the laws on the rental of premises and regulating the relationship between landlords and tenants. The law was published today in Issue No. 31 (bis) of the Official Gazette and will enter into force starting tomorrow.

Termination of Lease Contracts Within Seven Years

The law stipulates that lease contracts for premises rented for residential or non-residential purposes, and subject to Law No. 49 of 1977 and Law No. 136 of 1981, shall terminate within a maximum of seven years from the date it enters into force. This is intended to regulate the relationship between landlords and tenants and restore legal balance in the rental market.

Determining Rental Value and Zoning Classification

The law introduces a new mechanism for determining the legal rental value of properties. In each governorate, survey committees will be formed to classify areas into three categories: premium, middle, and economic, based on criteria including geographical location, utilities, building quality, and available infrastructure services.

Under Article (4) of the law, the monthly rental value in premium areas will start at EGP 1,000, decreasing to EGP 750 in middle areas and EGP 450 in economic areas, with a fixed annual increase of 10%.

Key Provisions of the Law

Article (1):
The provisions of this law apply to premises rented for residential purposes and to premises rented to natural persons for non-residential purposes, in accordance with Law No. 49 of 1977 on the leasing and sale of premises and the regulation of the relationship between landlord and tenant, and Law No. 136 of 1981 on certain provisions related to leasing and selling premises and regulating the landlord–tenant relationship.

Article (2):
Lease contracts for residential premises subject to this law shall terminate seven years from the date of its entry into force. Lease contracts for non-residential premises let to natural persons shall terminate five years from the date of entry into force, unless an earlier termination is agreed upon by both parties.

Article (3):
Survey committees shall be formed in each governorate by decision of the competent governor to classify areas containing premises covered by this law into premium, middle, and economic zones, based on specific standards such as location, building quality, utilities, road networks, public services, and comparative property tax valuations.

The Prime Minister shall issue rules governing the work of these committees, which must complete their work within three months of the law’s entry into force, with a possible one-time extension. Governors will publish the committee results in the Egyptian Gazette and announce them in local administrative units.

Article (4):
From the first rent payment date after the law’s entry into force, the legal rental value for residential premises in premium areas shall be ten times the current legal rent. For middle and economic areas, the multiplier is also ten, but with minimum amounts set: four times the current rent in middle areas, and EGP 250 in economic areas.

Until the classification process is completed, tenants must pay a temporary rent of EGP 250 per month. After the classification is published, any difference owed will be paid in equal monthly installments over a period matching the retroactive period.

Article (5):
From the first rent payment date after the law’s entry into force, the legal rent for non-residential premises rented to natural persons shall be five times the current legal rent.

Article (6):
The rents specified under Articles (4) and (5) shall increase annually by 10%.

Article (7):
Without prejudice to the grounds for eviction set forth in Article (18) of Law No. 136 of 1981, the tenant (or their legal successor) must vacate the premises and return it to the landlord upon expiry of the lease term set in Article (2), or if:

1. The premises have been left closed for more than three years without justification; or

2. The tenant (or successor) owns another unit suitable for the same use.

In case of refusal to vacate, the landlord may petition the competent summary judge for an eviction order without prejudice to the right to claim damages.

Article (8):
Before the contract termination deadlines set in Article (2), tenants (or their legal successors) may apply for the allocation of residential or non-residential units for rent or ownership from available state-owned properties, subject to priority criteria set by the Council of Ministers.

Article (9):
Without prejudice to Article (2), Laws No. 49 of 1977, No. 136 of 1981, and Law No. 6 of 1997 amending Article (29) of Law No. 49 of 1977 shall be repealed seven years from the date of this law’s entry into force.

Article (10):
This law shall be published in the Official Gazette and shall enter into force the day following its publication.

Issued at the Presidency on 9 Safar 1447 AH
(4 August 2025 AD)
Abdel Fattah El-Sisi