Toward a Fair Solution to the Old Rent Issue in Egypt

May 30, 2025

Ibrahim Ezz El-din

In this series of articles, we have examined four main stages to understand and analyze the old rent system in Egypt: starting from the lived reality, through legislative history, to assessing the system’s effects on the concerned parties, and finally presenting practical solutions and recommendations.

In the first article, titled “The Current Situation of the Old Rent System in Egypt,” we reviewed the features of the current crisis, highlighting the number of units subject to the system, the significant disparity between rental value and market price, and its impact on both landlords and tenants. We also discussed the role of this system in maintaining housing stability for many societal groups, despite legislative stagnation.

The second article, “The Old Rent System in Egypt: A History of Legislative Interventions and Social Transformations,” shed light on the historical and legislative context of the system, starting from the exceptional rent laws in the mid-20th century, and how these laws reshaped the relationship between the state and citizens regarding housing. We examined the evolution of the perception of property rights versus the right to housing and its implications on Egypt’s social and political landscape.

The third article, “Analyzing the Old Rent System and Its Impact on Landlords and Tenants,” provided an in-depth analytical reading of the complex relationship between the two parties. We explained how landlords were harmed by fixed rents and restrictions on property disposition, while the system enabled a large segment of low-income individuals to reside in central areas. We also discussed the intervention of third parties, such as investors and state bodies, and its impact on the future of rental relationships.

Finally, this fourth article attempts to propose fair and balanced solutions that consider the interests of both landlords and tenants, taking into account Egypt’s economic, social, and demographic context. The aim is to achieve justice, prevent discrimination, and align with international human rights standards, especially the right to adequate housing. Based on the analysis of the old rent issue in Egypt and its intersection with several fundamental human rights, notably the right to adequate housing and protection against forced eviction, this paper presents several recommendations to the Egyptian government and parliament as the legislative authority responsible for enacting laws to resolve the issue. Although the government’s move to address the old rent issue came late, leading to complexities between the contracting parties, the government’s and legislative authority’s intention to resolve the issue represents a significant opportunity. This opportunity allows for the drafting of fair legislation that ensures the rights of landlords and tenants and achieves a balance between property rights and housing stability, provided that all economic, social, and cultural aspects are considered to ensure justice in the solutions offered to both parties.

In this context, there is a strong motivation among many stakeholders, whether landlords or tenants, to reach a contract formula that meets both parties’ needs. Civil society also plays an important role in providing recommendations and alternative solutions that contribute to developing housing policies targeting different segments of society. These solutions should achieve social justice in the distribution of housing resources and contribute to improving the real estate market, especially in light of the economic challenges facing many Egyptian families and the exploitation of some market players during crises, such as migration issues and others.

First: At the Housing Sector Level

Impose effective control over the real estate market by adopting tax policies that limit real estate speculation and direct investments towards social and affordable housing projects, in addition to regulating rental relationships to ensure a balance between rental values and not leaving them to market freedom.
The state’s return to producing social and middle-income housing, moving beyond current policies that focus on profiting from housing projects, ensuring an active role for the state in meeting the housing needs of low and middle-income groups.
Regulate the relationship between the state and the private sector in housing by implementing policies that encourage private sector developers to allocate a percentage of their projects to provide affordable units, enhancing justice in the distribution of urban resources.
Provide direct support mechanisms for low-income families, such as soft loans and rent-to-own programs, to facilitate access to adequate and sustainable housing.

Second: At the Legislative Level

Review urban development legislation to ensure consistency with social justice principles and the right to housing, avoiding their use as tools for discrimination or exclusion.
Establish a precise legal definition of forced eviction processes in line with international standards, specifying cases where eviction is entirely prohibited, and ensuring the provision of suitable housing alternatives and fair compensation for those affected.
Implement monitoring mechanisms and legal safeguards to protect residents from eviction or relocation without genuine and prior consent, including activating the role of regulatory and judicial bodies.
Engage stakeholders, especially affected communities, in drafting and making legislative decisions related to housing and urban development, ensuring that these laws respond to residents’ needs and guarantee their sustainability and fair application.

Third: At the Landlord-Tenant Relationship Level

Regulate the relationship between landlords and tenants to ensure justice for both parties by adopting annual progressive rent increases, either according to inflation rates or as a percentage of the tenant’s monthly income, considering the actual economic capacity of residents.
Abolish clauses extending lease contracts by inheritance, except for the spouse, who has the right to continue the contract for a specified transitional period, while preserving the original tenant’s right to continue the rental relationship, without it automatically extending to family members, allowing for a rebalancing of the old rent market.
Inventory vacant units subject to the old rent system, granting a specified time frame to liberalize the relationship between landlords and tenants in these cases, allowing their reintegration into the market under fair mechanisms.
Impose legal restrictions on liberalizing rental relationships in occupied properties, preventing eviction or forced eviction operations, and requiring the provision of suitable housing alternatives before ending the contractual relationship, or in the case of voluntary agreement to terminate the rental relationship, ensuring a fair transition without compromising the right to housing.
The state should assume its social responsibility towards affected landlords and tenants by establishing a fund to support rental value during a specified transitional period or granting tax exemptions to alleviate their financial burdens, funded by the state, tax exemptions for landlords, and proceeds from reconciliation in building violations.
Ensure the protection of historic and architecturally significant buildings from demolition or eviction, with the state maintaining them as public heritage, not a burden solely on