Follow us on Facebook

Walaw

Economy

Egypt's rental crisis: the end of frozen rents sparks concern for tenants

Saturday 14 June 2025 - 13:30

By: Dakir Madiha

Zoom

In a turbulent economic climate, Egypt's rental market is facing a monumental shift as decades-old rent control policies near their end. Since 2021, the Egyptian pound has plummeted by 70% against the dollar, with inflation soaring to a staggering 40%. These conditions have rendered the rental market chaotic, leaving landlords and tenants grappling with unpredictable pricing.

The Supreme Constitutional Court intensified the uncertainty in late 2024 by ruling against a longstanding law that froze rents and allowed lease inheritances. After a 37-year legal battle, Parliament must amend the law by June’s end, or rent caps will be abolished entirely. This decision has major implications for the 3.3 million families living in rented housing, including 1.6 million under old contracts. In Cairo alone, 25% of households rely on these fixed-rate agreements.

A stark divide in rental prices

Landlords in Egypt have long decried the massive disparity between old and new rental contracts, particularly in Cairo, where 600,000 households pay rents of under 50 Egyptian pounds ($1) per month. In stark contrast, modern rental rates can be up to 100 times higher. This imbalance has led to deteriorating properties, as landlords lack the resources—or motivation—to maintain them. Some have even left apartments vacant or resorted to extreme measures, such as vandalism, to evict tenants and sell the land.

Advocates for rent control argue that it ensures tenant stability and fosters strong community ties. They also note that many tenants have covered maintenance costs or invested in property improvements over the years, creating a quasi-ownership model.

A looming eviction crisis

The government faces a critical challenge: many tenants under old contracts are low-income families unable to afford market rates or purchase alternatives. With Egypt’s private sector minimum wage at just $143 per month—and often unenforced—a sudden shift to market-based rents could trigger mass evictions, displacing hundreds of thousands of families. Critics question why successive governments have failed to provide affordable housing solutions for the majority of Egyptians.

Government's proposed solution

In response, the pro-market government has proposed legislation to gradually phase out old rent controls. The bill suggests raising old rents by 20%, with a minimum of 1,000 pounds ($20) in cities and 500 pounds ($10) in rural areas. Over five years, rents would increase by 15% annually, eventually aligning with market rates. To address potential evictions, the bill includes provisions for evicted families to access social housing. However, these units are often far from tenants’ current neighborhoods, posing further challenges.

As the deadline approaches, the debate over Egypt’s rental market highlights deeper economic and social inequalities. With millions of families at risk, the government’s decisions in the coming weeks will shape the future of housing in the country.