The whole world has been upside down since yesterday due to the decision of the Supreme Constitutional Court, which decided that some articles in Law No. 136 of 1981, related to renting places and regulating the relationship between the landlord and the tenant, were unconstitutional. I wonder what the story of this matter is.. and what will happen in the rents in the coming period.. Follow us and you will find out the details in this video.
Yesterday, the Supreme Constitutional Court issued a historic decision that the first paragraph of Articles 1 and 2 of Law No. 136 of 1981, which regulates the relationship of real estate and apartment rentals between the landlord and the tenant, is unconstitutional. These two articles are specific to the annual rent for places licensed to be established for residential purposes.
After this decision, all of Egypt is asking about this decision and what effect it will have on rental prices in Egypt. Will apartment rents increase again in the coming period or what will happen next?
In order to understand this issue well, we must know that this decision is specific to old rents, which caused a lot of confusion in the past period, especially since real estate owners at the present time found themselves not receiving from the buildings and residential apartments that they own except a few million, and the rent they receive per person. Among them, it will not be necessary to rent a single apartment at the prices currently available in the market.
As we know, the old rental law stipulates that the tenant has the right to reside in the unit for life and inherit it to his children if they are residing with him without an increase in the rent value. Despite the many amendments to the law in the past twenty years, the problem is still there. There is a major crisis in Egyptian society, and the Housing Committee of the House of Representatives in the past period issued recommendations on the work program of the new government, amounting to 31 recommendations to amend the laws that regulate the relationship between the landlord and the tenant in light of the old rental laws, with the aim of establishing balance, which was absent from the contractual relationship. For decades, rights and obligations.
The story of the beginning of the amendments to the old rent law began when President Abdel Fattah El-Sisi demanded at the Story of a Nation conference, which was held in October 2023, the necessity of having a strong, decisive, and fast law to address the problem of real estate to which the old rent law was applied. The government monitored the number of apartments closed due to the law, which reached 2 million apartments. Wish for 2 trillion pounds.
President Sisi directed Parliament to legislate a law that would change the culture of fear that exists regarding the property owner losing the residential unit and therefore leaving it empty rather than renting it.
President Sisi called on members of Parliament to enact legislation specifically for empty residential units, especially since the owner of the apartment had it in his mind that if he rented his apartment, he would earn 500 or 1,000 pounds a month from it, but he could lose it forever, and therefore the best decision would be to leave it empty as soon as it is gone, especially since The number that the owners of these apartments pay to the owners is very small and negligible at the present time, and the President stressed the importance of having a strong, decisive and quick law on this issue to save 2 million empty apartments.
