Prime Minister Mostafa Madbouly. Photo courtesy of Egyptian cabinet.
Speaking at a press conference following the cabinet’s weekly meeting, Madbouly revealed that the proposal includes a transitional period of at least five years, during which rent increases would be introduced gradually.
"The government’s proposal suggests setting a minimum rent value in cities or villages alongside a transitional period of no less than five years," Madbouly told reporters.
The premier did not clarify whether tenants would be required to leave the properties at the end of this period, or if a new framework governing the relationship between landlords and tenants would be established.
Following Madbouly’s remarks, Cabinet spokesperson Mohamed El-Homsany clarified that tenants would not necessarily have to leave their properties immediately after the five-year transitional period.
El-Homsany hinted at the potential for a revised landlord-tenant agreement.
However, MP Alaa Abed said on his Facebook page on Tuesday, all old rental contracts will expire five years after the date the new draft law takes effect.
Thousands of apartments, worth millions, are still rented for very little in Egypt because of rent freezes under the old law, leaving landlords unable to reclaim their property for years.
While landlords have frequently sought to reclaim their properties through complaints, tenants, many of whom are pensioners, have voiced concerns about being unable to move out and buy new homes due to high costs.
Madbouly emphasised that the government's proposals would be subject to full parliamentary debate, given the public significance of the issue.
“We are aware that some tenants face difficult economic conditions that make it hard to keep up with free-market rates, and therefore, the law will strive to strike a balance,” he said.
The prime minister asserted that the draft bill will be “debated openly” in parliament.
He underscored that the government aims to reach “a fair and balanced framework” that protects the rights of both landlords and tenants, taking into account social circumstances.
Madbouly noted that the submission of the draft complies with a ruling by the Supreme Constitutional Court (SCC) mandating the state to issue executive regulations before the end of the current legislative term, which ends in less than three months.
In November, the SCC, the country's highest court responsible for ensuring laws conform to the Constitution, ruled that the fixed annual rent for premises licensed for residential purposes, as stipulated in the law, was unconstitutional.
Earlier Tuesday, the Parliament Speaker Hanafy Gebaly referred two draft laws submitted by the government to the relevant parliamentary committees for review.
Ahram Online takes a closer look at the proposed amendments revealed in recent media reports.
The Key Provisions of the draft bills:
- Eviction Timeline:
Tenants will be required to vacate and return leased properties to the landlords within five years from the effective date of the new legislation.
- Legal Enforcement:
Landlords are granted the right to seek legal recourse. They may petition the competent court to issue an expedited eviction order against tenants who refuse to vacate after the grace period.
- Alternative Housing Options:
To address potential social concerns related to evictions, the state will offer alternative housing units—either for rent or ownership—based on availability. These units will be distributed according to conditions and procedures defined by the Prime Minister, upon recommendation by the Minister of Housing.
- Non-Residential Rent Increases:
For properties rented to individuals for non-residential purposes, the monthly rent will be increased to five times the current rate, with an annual increment of 15 percent for a period of five years from the law's implementation.
- Residential Rent Increases:
For properties rented for residential purposes, the monthly rent will be raised to twenty times the current amount, with a minimum of EGP 1,000 units located in cities and urban districts and EGP 500 for units located in rural areas.
Short link: