The first annual increase in Rent under Egypt’s old rental system is scheduled to take effect in September, covering residential units and non-residential activities involving natural persons, in accordance with Law No. 164 of 2025.
The increase is part of the measures introduced by the law to regulate the relationship between landlords and tenants during the transitional period, ahead of ending the old rental system according to the specified rules and timelines.
15% Increase in Old Rent
Law No. 164 of 2025 provides for a periodic annual increase of 15% in the rental value of units covered by its provisions.
The increase applies to the units subject to the law, whether residential or non-residential in cases covered by its provisions.
When Will the First Annual Increase Take Effect?
With the arrival of September, one full year will have passed since the implementation of the law, marking the start of the first annual increase of 15% according to the applicable legal provisions.
The annual increase will continue throughout the transitional period established by the law, before the rental relationship ends according to the applicable period for each type of unit.
When Will Old Rental Contracts End?
The law established a transitional period for regulating the rental relationship and ending old rental contracts, with different periods depending on the type of property.
The transitional period is seven years for residential units and five years for non-residential units owned by natural persons, according to the law.
How Much Time Remains on the Contracts?
By September, one full year of the transitional period will have passed.
Accordingly, six years will remain for residential units, while four years will remain for non-residential units, based on the transitional periods specified by the law.
Why Did the Law Introduce an Annual Increase?
The annual increase is part of the mechanism established by the law during the transitional period to gradually regulate the rental relationship before reaching the end of the periods set for terminating old rental contracts.
The transitional phase is intended to provide the parties with a defined period before the rental relationship ends under the new legal framework.
Old Rent During the Transitional Period
The rental relationship during the transitional period remains governed by the rules established by the law, including the applicable annual increase in rental value.
Landlords and tenants are required to comply with the legal provisions regulating their relationship throughout this period until the relevant transitional period expires.
When will the first annual old rent increase begin?
The first annual increase of 15% is scheduled to begin in September, after one year has passed since the law came into effect.
What is the old rent increase rate?
The law provides for a periodic annual increase of 15% in the rental value of units covered by its provisions.
How long is the transitional period for residential units?
The transitional period for residential units is seven years.
How long is the transitional period for non-residential units?
The transitional period for non-residential units owned by natural persons is five years.
How much time remains before old rental contracts end?
According to the information provided, six years remain for residential units and four years for non-residential units as of September.
