November 2024 Bulletin

Covering developments on the Old Rent law, WUF12, and mega urban redevelopments

In this issue of the Housing Policy Tracker, we cover the momentous Supreme Constitutional Court ruling nearly abolishing Old Rent (rent control), summarise developments in state-led urban redevelopment and real estate projects, and give an overview of official presence at the UN-Habitat World Urban Forum 12 held in Cairo.

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Tenure & Legalization

Egypt’s Supreme Constitutional Court - sis.gov.eg

Fixed Rents Under “Old Rent” Law Ruled Unconstitutional

In a landmark ruling, Egypt’s Supreme Constitutional Court deemed articles one and two of Law 136/1981, also known as the “old rent” law, unconstitutional. Egypt's long-standing "Old Rent" law has created a deeply entrenched and contentious issue within the country's housing market. Rent freezes were first introduced in the 1940’s in an attempt to protect tenant rights amid price gouging in World War II. Eight decades onwards, this has resulted in extreme disparities between what older tenants pay (contracts made between the 1940s and 1996) and current market rates. Since deregulation in 1996, landlords have been free to set prices, lengths and raises in ‘New Rent’ (market rent) contracts, which have seen prices soar on an annual basis. For instance, some tenants in more desirable areas pay less than EGP100, while comparable apartments in the same buildings are rented at market value, 100 times those values. While landlords who receive minimal income from their properties are left in resentment, many tenants, particularly elderly and low-income individuals, rely heavily on low rents and face the threat of displacement should rents be adjusted to reflect market values. This imbalance has created a deadlock, with both sides feeling aggrieved and the government struggling to find a solution that addresses the concerns of all stakeholders.