Cairo Faces Shock as Rent Controls End

Egypt moves old-rent units toward the open market

Egypt is dismantling its long-running “old rent” framework, a system that effectively froze rent levels and preserved long-term tenure for many residential and commercial tenants. New Lines Magazine reports that contracts signed before 1996 could keep rents at symbolic levels and, in some cases, be passed on within families, leaving a large portion of the housing stock operating outside market pricing.

Court ruling and a law-driven transition

A major trigger was Egypt’s Supreme Constitutional Court ruling in late 2024, which found fixed-rent provisions unconstitutional and pushed lawmakers to overhaul the framework. Subsequent legislation introduced a formal transition. Egyptian Streets and Egypt Today report that residential leases under the old system are given a seven-year transition period, after which contracts are terminated and future arrangements fall under the Civil Code’s more flexible rules.

How rents will rise during the transition

During the initial phase, rent increases are tied to neighborhood classification. In prime areas, rents can rise by up to twenty times the previous level, with a minimum of EGP 1,000 per month. Middle-income areas carry a minimum of EGP 400, while economic areas have a minimum of EGP 250. The law also sets annual increases of 15% during the transition period. New Lines Magazine notes that this structure creates a rapid repricing cycle for households that have lived for decades under near-frozen payments.

Tenants fear displacement as protections shrink

The reform affects millions of people connected to old-rent housing and commercial spaces, with many tenants concerned about long-term housing security once contracts expire. New Lines Magazine highlights that a large share of affected tenants in Cairo live in dense working-class districts, where incomes are less able to absorb steep rent adjustments. In 2025, civil society groups publicly argued for reform designs that protect the right to housing and reduce the risk of forced displacement during implementation.

Landlords argue the freeze distorted incentives in Egypt

Property owners have long argued that frozen rents made basic maintenance and investment irrational, encouraging loopholes and deepening hostility between tenants and landlords. Broader legal and policy analysis describes how decades of distortion accumulated until the issue became unavoidable once the court intervened. The move toward liberalized pricing also strengthens incentives for redevelopment, especially in areas where higher returns can be achieved through rebuilding and densification, raising the risk that long-standing communities will be priced out.

Why the market shift may reshape Cairo’s social map

The transition arrives amid high cost-of-living pressure and reduced household resilience, meaning rent shocks can translate quickly into forced moves and informal coping strategies. Academic and policy commentary has warned that without credible, accessible alternatives, the reform could produce wider housing insecurity and deepen spatial inequality as residents are pushed farther from established neighborhoods and social networks.

As experts at International Investment report, Egypt’s shift away from old rent controls is a structural liberalization aimed at restoring property-right incentives, but the pace and design of the transition risk large-scale displacement in Cairo unless stronger tenant safeguards and realistic affordable-housing capacity are built into implementation.