Around 1.6 million families are at risk of losing their homes as Egypt reforms laws governing rent control.

In recent months, Sahar* started following the proceedings of Egypt’s parliament for the first time in her life, as lawmakers discussed a legislation that could cost her the house she has been living in for nearly 40 years.

Sahar, now 70 years old, lives with her only daughter in a rented apartment in the Dokki neighborhood in greater Cairo. She inherited the apartment’s lease from her husband, who had inherited it from his father. The annual rent for the apartment, located in a calm, tree-laden street, is 1,500 Egyptian pounds ($30), a figure well below market prices thanks to a rent control regime called the “old rent system.”

As parliament approves a new law that would end this system and liberalize rents for around 1.6 million tenant families, Sahar finds herself in a difficult position. She lives on a government pension that barely covers her personal expenses, and cannot afford to rent another apartment in the same area, with rents starting at around 15,000 Egyptian pounds (about $300) monthly.

“I don’t want to be humiliated in my final days,” Sahar said in an interview with TIMEP. Her feelings are shared by many Egyptians who could find themselves evicted from their homes as old rent is abolished.

On the other hand, Sahar’s landlords, who are also heirs of the original owner, are dealing with another form of injustice. They own an asset valued at more than 30 million Egyptian pounds (about $600,000), that genertates virtually no return for them. “We are property owners on paper only. But in reality, we are poor!” This is how Olfat*, who owns the property with five of her sisters, described their situation.

Some fear that amending the system will clear the way for the government to seize properties in some of the historic neighborhoods in Greater Cairo and Alexandria

While the debate over the old rent law has raged for decades, Egypt’s Constitutional Court ruled in November 2024 that the provisions in current laws on rent stability were unconstitutional. The court also required the government to amend the old rent system before the end of June 2025. The issue of amending the old rent system creates a policy dilemma: it may cause serious social consequences amid harsh economic conditions and rising poverty rates, but at the same time it may revitalize the real estate market, and free up assets that the state could exploit to help address its chronic budget deficit.

Some also fear that amending the system will clear the way for the government to seize properties in some of the historic neighborhoods in Greater Cairo and Alexandria, offering them to investors, while disregarding the economic and social interests of residents—something it had done before.

Wars and defeats

The old rent system emerged in the early 20th century to protect tenants and ensure housing stability. Law no. 11 of 1920 introduced rent ceilings, and decades later, Law no. 121 of 1947 was passed as the first comprehensive rental legislation, which imposed restrictions on eviction and set a rent ceiling, while allowing owners or their relatives to recover housing units under specific conditions.

Then came Law No. 52 of 1969 during the critical political and social context that followed Egypt’s defeat in the 1967 war, which coincided with a worsening housing crisis and rising population density in major Egyptian cities. The state moved toward strengthening social protection for low and middle-income earners. The law stabilized rents and allowed the extension of lease contracts to include the tenants’ relatives up to the third degree (children, siblings, uncles, aunts, and grandchildren).

Some balance in the rental relationship was only achieved with Law No. 4 of 1996, which granted property owners greater freedom with contracts, including the ability to set a lease term and the possibility of increasing the rent in line with market conditions. The 1996 law was not applied retroactively to contracts signed before it was issued, leaving older contracts subject to the restrictions contained in the laws that preceded it.

A complex system

The task of introducing legislation that protects the rights of both tenants and property owners is a daunting one.

In the late 1960s, as the housing crisis in Egyptian cities worsened, landlords started asking for large advance payments as a condition to sign lease agreements. These amounts were not refundable and did not count toward future rent payments, which made the rental relationship resemble long-term real estate loans, where the tenant pays a down payment upfront, then continues to pay “installments” in the form of the agreed rent. Tenants agreed to pay these amounts on the assumption that they would live in the residential units for generations.

Ahmed El-Masry currently has a shop in Alexandria for a monthly rent of 40 pounds (less than $1), while the market value of the rental is around 6,000 pounds ($120). He argues that he has a right to the shop, even though the rent he pays is low, because his father signed the original contract in 1992 and paid 33,000 pounds ($10,000 at the time) upfront to the landlord.

Waheed El-Ahmed and his siblings inherited a 15-story residential building in the Duweiqa area—one of Cairo’s working-class neighborhoods. El-Ahmed says that tenants pay an average of 70 pounds (less than $1.5) annually, while rent in the area is at least 2,500 pounds ($50) per month. He is now trying to sell the apartments to the current tenants, but they undervalue the units because they know they are in a position of power. For example, one tenant offered to buy the apartment he lives in for 70,000 Egyptian pounds (around $1,400), while the market value of the unit is around 500,000 pounds ($10,000), according to El-Ahmed.

The fact that lease contracts can be passed down to tenants’ relatives complicates the issue, as in many cases, they keep the units vacant or even sublet it at market rates. This is the case in El-Ahmed’s building, where one tenant is subletting their apartment for 2,500 Egyptian pounds monthly while they pay El-Ahmed and his siblings 70 Egyptian pounds annually.

Such practices have led some property owners to deliberately sabotage the foundations of their buildings in order to accelerate their collapse and reclaim the land. These practices include digging into the internal structures of buildings or using materials like “Dexpan,” which gradually and quietly disintegrates concrete.

Tight timeframe

While the issue of old rent had languished for 26 years before Egypt’s Constitutional Court without resolution, its recent verdict came just one year after President Abdel Fattah El-Sisi urged action. This timeline highlights the reality of policy making in Egypt, where executive directives enjoy absolute precedence over legislative and judicial independence.

This timeline highlights the reality of policy making in Egypt, where executive directives enjoy precedence over legislative and judicial independence

The government submitted a draft law to parliament in May 2025 proposing one-time initial rent hikes, annual increases, and a five-year transitional period after which old rental contracts would be automatically annulled. The proposal faced opposition in parliament, a rare sight in Egyptian politics, from staunch regime supporters and opponents alike. Critics of the new draft law argued that it disproportionately favored landlords, lacked safeguards for vulnerable tenants, and relied on outdated government data about rental occupancy. They also questioned its timing amid a broader economic crisis and criticized its failure to address Egypt’s 12 million vacant housing units, which exacerbate the supply shortage.

Despite these objections, the government reintroduced a near-identical bill in June 2025, doubling down on its original framework, with small adjustments: the transitional period before residential leases would expire was extended to seven years instead of five. Annual rent hikes were set at 15 percent, with an initial increase of up to 20-fold—ignoring parliamentary and public demands for inflation-linked adjustments.The law also grants affected tenants priority for alternative housing units built by the state in exchange for vacating their original units.

Forced displacement

Millions of people now face the risk of forced eviction in seven years’ time, without viable alternatives. This risk is amplified by a real estate market increasingly controlled by investors and profit-seeking government agencies, where speculation has driven prices beyond reach for average Egyptians.

At the same time, affordable housing for low and middle income families has become increasingly scarce, as profit-driven motives take precedence over social responsibility. This shift is widening the gap between socioeconomic classes and reshaping urban neighborhoods based on investment value rather than social equity.

As housing became more expensive, a parallel crisis emerged: 87 percent of new homes built in the past eight years are in unplanned, often illegal settlements—a direct consequence of lax oversight and recent government decisions to loosen and legalize certain building violations in exchange for fees. This is why many fear that ending rent controls without offering suitable alternatives will lead to a new wave of displacement toward informal housing, a phenomenon the government has struggled to contain, despite its efforts to build new planned communities.

There are also growing concerns that lifting rent protections will pave the way for real estate companies and even government bodies to swoop in and take over historic properties

There are also growing concerns that lifting rent protections will pave the way for real estate companies and even government bodies to swoop in and take over historic properties—many of which are in prime areas of Cairo, Giza, and Alexandria. A clear example is Al Ismaelia for Real Estate Investment, which acquired roughly 15,000 square meters of heritage buildings in downtown Cairo over the past decade, including 25 historic buildings. These were redeveloped and marketed at much higher prices. Another example is Misr Real Estate Assets Management Company, a public company that owns a significant number of rent-controlled units in Greater Cairo and Alexandria. The company has reached deals with tenants to vacate in exchange for profit-sharing agreements on redeveloped properties.

Others could also follow suit, benefiting from the removal of legal barriers that once protected long-term tenants, either by buying properties directly or through tools like eminent domain, which allows the government to confiscate land or buildings it deems necessary for the public good. Under the old rent system, long-term leases often blocked lucrative redevelopment projects, especially in historic and working-class neighborhoods, where eviction was difficult or nearly impossible.

One government body with growing influence in this space is the New Urban Communities Authority, which has the legal power to seize land and property for development. For example, it recently took control of parts of Warraq Island, displacing residents to pave the way for a new high-end development. This means the impact of changing rent laws goes far beyond landlord-tenant relations—it could completely redraw property ownership and land use in Egypt’s historic urban centers.

A just legislation

The crisis around Egypt’s old rent system is complex, sitting at the crossroads of basic human rights, economic realities, and political agendas. Instead of the law that was passed, the government should have worked toward striking a genuine balance between the rights of landlords and the needs of tenants.

The transition away from old rent laws should be gradual and fair—sensitive to economic conditions but never at the cost of people’s right to a home

The state should have reasserted its role in regulating the housing market, placing social justice at the core of its housing policy. This includes effective oversight, offering affordable housing, and providing targeted support to the most vulnerable. More generally, legal reforms must also bring urban planning laws into line with international standards, especially when it comes to forced evictions, compensation, and the right to alternative housing. The transition away from old rent laws should be gradual and fair—sensitive to economic conditions but never at the cost of people’s right to a home.

Ultimately, the state has a critical role to play in ensuring that the process is equitable for everyone. That means providing direct support, protecting historic buildings from demolition or takeover, and ensuring that housing reform prioritizes people’s dignity—not just profit. Fixing the rent crisis is not just about new laws or regulations, it demands the political will to put people first in Egypt’s urban future.

*The names have been withheld to protect the safety and privacy of the individuals interviewed.

Ibrahim Ezzeldin is a former nonresident fellow at TIMEP and an Egyptian urban planner and researcher.

Original source

Themes

• Advocacy • ESC rights • Forced evictions • Housing rights • Human rights • Legal frameworks • Low income • National • Norms and standards • Public policies • Research • Security of tenure • Squatters