Egypt Scraps Decades-Old Rent Caps, Tenants Fear Displacement
Cairo – For 84-year-old Ali, home has been the same eighth-floor apartment in Azbakeya for nearly half a century. Thanks to a decades-old rent cap, she pays less than 11 Egyptian pounds ($0.23) a month. But now, even that security is under threat.
In July, Egypt’s parliament approved the country’s most sweeping rent reform in decades, scrapping old rent caps and rules that allowed tenants – and in some cases their heirs – to stay in homes indefinitely. The changes will be phased in: five years for non-residential units and seven years for homes.
The move affects millions of households, sparking fear among long-time tenants who relied on low rents to maintain stability. “I’m afraid all the time,” Ali admitted. “After all this familiarity, I would just leave?”
The law targets “old rent” contracts signed before January 31, 1996. After that date, rental market liberalisation began, but earlier agreements were left untouched. This led to massive gaps in rent: some tenants in prime Cairo districts still pay just a few pounds a month, while market rents have soared.
Relief for Landlords
Supporters argue the reform corrects decades of unfairness. Landlords say token rents left them with no incentive – or means – to maintain properties.
“Tenants grew old, but landlords did too,” said Tarek Mohammed, a 61-year-old landlord in Cairo who rents out apartments for as little as six pounds a month. “We also have widows, pensioners, and divorcees who depend on this income.”
Government Promises Safety Nets
Officials insist no one will be left homeless. On August 27, the cabinet approved measures to provide housing to old-rent tenants under rental, rent-to-own, or ownership schemes.
Parliamentary Affairs Minister Mahmoud Fawzi said the state had a “legal commitment” to ensure families were housed before the law took effect.
The reform followed a court ruling last November that declared old rent laws unconstitutional, forcing the government to act quickly. Critics, however, say the rush left gaps. “We don’t know the exact numbers, tenant profiles, or property data,” said researcher May Qabeel from the Egyptian Initiative for Personal Rights.
Rising Costs for Tenants
During the transition, rents will rise sharply – up to twenty times in upscale districts and ten times in mid-tier and lower-income areas. Minimum rents will be set at 1,000 pounds in prime areas, 400 pounds in mid-tier, and 250 pounds in poorer neighborhoods. Afterward, rents will increase 15% annually.
With Egypt’s minimum wage at 7,000 pounds per month – and many workers earning less – analysts warn the changes could squeeze families already struggling with rising living costs.
Housing Pressure
The state’s housing programme delivers about 69,000 units a year, but experts estimate more than 500,000 families in old-rent apartments may need support.
Urban planner Ahmed Zaazaa warned that relocating families to new housing on Cairo’s outskirts could strain budgets and disrupt livelihoods. He also cautioned that historic districts risk losing their character as gentrification accelerates.
“If safeguards aren’t in place, old neighborhoods could be wiped out and replaced with high-rise blocks,” Zaazaa said.
Fear on the Ground
For many, the law threatens both homes and livelihoods. Mohammed Hassan, a 35-year-old shopkeeper in al-Khosos, faces losing not just his apartment but also his store.
“My life is destroyed,” he said. “In a few years, I’ll lose my shop, then my home. Where shall I go?”
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