The issue of old rent in Egypt is one of the most complex real estate matters, arising from historical legal overlaps that have complicated the relationship between property owners and tenants. Over decades, successive governments have opted for a policy of neglecting this issue, preferring to avoid direct confrontation, which has led to the continuation of the crisis without decisive solutions. The issue remained unresolved before the judiciary for many years without clear legislative intervention, deepening the gap between the rent value fixed in the past and current market prices. This also gave rise to a third party: investors who seek to control these units, especially those with high real estate value.

This article is the first in a series of four analytical articles based on the research paper prepared by Ibrahim Ezz El-Din titled “The Old Rent System and Legislative and Urban Challenges in Egypt,” published by the Egyptian Commission for Rights and Freedoms on April 21, 2025. The purpose of this series is to unpack the legal, social, economic, and political dimensions of the old rent system and offer a critical reading of the current official trends and their impact on various social groups.

The old rent system presents a dual dilemma: balancing social justice with property rights in the context of economic transformations and modern urban policies. On one hand, this system acts as a safety net for large segments of the middle class and low-income individuals, who rely on it to ensure their housing stability. On the other hand, the fixed rental value leads to significant losses for property owners and hinders real estate investment, prompting the state to adopt market liberalization policies that align with its developmental strategies.

The challenge lies in how to achieve a fair balance that does not come at the expense of vulnerable groups nor turn into a means to maximize the profits of the state or real estate companies. Egypt has begun taking legislative steps toward ending this system, at a time when the government lacks effective tools to regulate the real estate market. Rent values are left to the forces of supply and demand, alongside the state pushing for increased investment and urban development.

However, these policies often lead to forced evictions and the seizure of residents’ homes under the pretext of development projects, with a clear bias toward capital. As living pressures mount and inflation rises, amending the old rent laws has become an urgent demand from both the state and property owners, yet it raises genuine concerns among tenants who lack affordable housing alternatives.

State Intervention in the Issue

In October 2023, President Abdel Fattah El-Sisi mentioned in one of his speeches the necessity of government intervention to solve the old rent issue. A year later, in November 2024, the Supreme Constitutional Court ruled that two articles from laws 49/1977 and 136/1981, related to fixed rent values, were unconstitutional.

Despite the long-standing nature of the old rent issue and the demands of property owners for solutions, there had been no substantial movement by Parliament. Although the case the court ruled on had been pending for nearly 26 years without any action taken during this time, the ruling came shortly after the President’s directive to resolve the issue, prompting the Egyptian Parliament to quickly prepare a new law regarding old rent. This reflects the general political trend of the country, which is now predominantly governed by the President, with other state institutions taking no action unless directed. This has been reflected in the statements of the Head of the Housing Committee in Parliament, who stated that the work is proceeding based on the President’s directives. This raises questions about the independence of these authorities and whether political influence affects decisions related to societal issues.

The court has mandated the Egyptian Parliament to amend the system before the end of the current legislative session in June 2025. However, this short timeframe may not allow for sufficient studies to ensure a fair and balanced law. There are concerns that the voices of those affected by the law, such as owners and tenants, might be ignored, leading to unsustainable or unjust legislation. If the law is not issued by the specified deadline, the court ruling stipulates that the relationship between the owner and the tenant will automatically be liberalized, which could lead to drastic changes in the rental market.

Here, questions arise about the state’s ability to achieve a real balance between the interests of all parties, without leaving owners in unjust situations or exposing tenants to the risk of eviction, especially in the absence of supportive housing policies for vulnerable groups. The continued lack of a clear vision could lead to escalating social tensions, particularly in major cities where the majority of old rental units are concentrated.

The Current Status of the Old Rent System and Beneficiary Households

According to data from the Central Agency for Public Mobilization and Statistics in 2017, the total number of households in Egypt is 23,455,079, while the number of households relying on the old rent system is 1,642,870, accounting for 7.0% of the total Egyptian households. The total number of properties subject to the old rent system is 3,019,662 units, with residential usage accounting for 54% of the total, while 46% is used for other purposes such as commercial and administrative purposes.

The old rent properties are distributed across Egypt’s entire geographic area, but the largest proportion is concentrated in Greater Cairo and Alexandria. Cairo Governorate holds the largest share with 670,857 households, followed by Giza with 308,091 households, Alexandria with 213,147 households, and Qalyubia with 150,961 households.

The total number of households in four main governorates of Egypt is 1,343,056, representing about 81.75% of all households renting under the old system. These households are distributed as follows: 670,857 households in Cairo (40.83% of the total), 308,091 households in Giza (18.75%), 213,147 households in Alexandria (12.97%), and 150,961 households in Qalyubia (9.19%). These four governorates account for the largest proportion of old rent tenants in Egypt.

One-third of the tenant households pay less than 50 EGP per month, 20% pay between 50 and 100 EGP, and 19% pay between 100 and 200 EGP. Historically, old rent households accounted for 29% of Egypt’s population in the 1970s, but this dropped to 7% by 2017, with the number of households decreasing from 2.8 million in 1996 to 1.6 million in 2017.