Egypt's Official Gazette has published a pivotal decision from the Council of Ministers, detailing the procedures for tenants affected by the old rent laws to acquire new housing units. This move, stemming from Law No. 164 of 2025, aims to regulate the relationship between landlords and tenants and provide a clear pathway for those under previous, more restrictive rental agreements.

The new regulations, specifically Article 8 of the law, grant existing tenants and those whose leases have been extended under prior legislation (Laws 49 of 1977 and 136 of 1981) the right to be allocated a residential or non-residential unit. These units can be obtained either through rent or ownership, from the state's available housing stock. The government has established specific criteria, conditions, and procedures for the application and allocation process, with a dedicated central administration within the Social Housing Fund to manage these applications.

Market Signals

The government's proactive approach to rehousing tenants under old rent laws signals a significant shift in Egypt's real estate landscape, potentially unlocking millions of previously 'frozen' units.
This initiative is expected to stimulate activity in the construction and property management sectors as demand for new housing units and potential renovations increases.
The phased rent increases and the new allocation mechanisms are designed to bring rental prices closer to market rates over time.

Winners & Losers

Landlords stand to benefit from clearer regulations and the eventual ability to set market-driven rents. Tenants, particularly those who are vulnerable, are the primary focus for government support in securing new housing. Real estate developers and construction companies may find new opportunities. Sectors providing financing and property management services are also positioned to gain.

Action Timeline

Immediate: Eligible tenants must be aware of the application window, which opened on October 1, 2025, and closes within three months. The Ministry of Housing is actively accepting applications.
Short-term: The establishment of classification committees to categorize districts will determine specific rent adjustments. Companies in the construction and renovation sectors should prepare for increased demand.
Long-term: The full implementation of the law will lead to a market-based rental system, significantly altering property ownership and rental dynamics in Egypt.

Risk Assessment

Regulatory Risk: Delays in processing applications or allocating housing units could lead to tenant dissatisfaction.
Market Volatility: The transition to market-based rents may cause initial price fluctuations.
Implementation Challenges: Ensuring sufficient housing stock and efficient allocation processes are critical to avoid social disruption.