How Is the Legal Rental Value Calculated? And What Changed in Old-Rent Leases Under Law No. 164 of 2025?
Many people ask us: “How much has old rent gone up?”, “How do I find out my rent under the new law?”, “My landlord raised the rent — is that his right?” and “The survey committee classified my area as premium — what do I do?” The answer: rent is fixed by agreement in Civil Code leases and by the legal rental value in old-rent leases. Since Law No. 164 of 2025, the legal rental value for residential premises is 20 times or 10 times the rental value in force, depending on the classification of the area, and 5 times for non-residential premises leased to natural persons, with an annual increase of 15%.
What is the legal rental value?
It is the rent determined by the rent determination committees, formed by decision of the governor, under the rent laws (Art. 12 of Law No. 49 of 1977). The rules for determining it are a matter of public policy, so an agreement contrary to them is void.
And in a Civil Code lease?
Rent is fixed by agreement, since the contract is the law of the parties (Civil Code, Art. 147). Neither the multipliers nor the survey committees apply, and the tenant is bound by what was agreed.
How is rent calculated in old-rent leases after Law No. 164 of 2025?
Starting from the due date of the first monthly rent following the date the law came into force (Arts. 4 and 5):
| Type of premises | Multiplier of the legal rental value in force | Monthly minimum |
|---|---|---|
| Residential — premium area | 20 times | EGP 1,000 |
| Residential — medium area | 10 times | EGP 400 |
| Residential — economic area | 10 times | EGP 250 |
| Non-residential (natural persons) | 5 times | — |
Example: a rent in force of EGP 30 in a premium area yields EGP 600 by multiplication, but the minimum is EGP 1,000, so the rent is EGP 1,000. A rent in force of EGP 80 in a medium area yields EGP 800, which is above the minimum, so the rent is EGP 800.
Who classifies the area, and by what criteria?
Survey committees formed by decision of the competent governor. Among the criteria considered are the level of services and utilities in the area, and the annual rental value of buildings subject to the Real Estate Tax Law No. 196 of 2008 in the same area (Art. 3).
Does the rent change every year?
Yes. Article 6 provides that the value determined under Articles 4 and 5 increases annually, periodically, by 15%.
Until the classification decisions are issued, how is rent paid?
The law provides for payment of a provisional amount of EGP 250 per month until the classification decisions are issued, after which the accrued differences are paid in equal monthly installments (Art. 4).
May a survey committee’s decision be challenged?
Yes. It is an administrative decision subject to the review of the Administrative Judiciary, and it is challenged by an annulment action before the State Council courts within sixty days of its publication or of notice of it, under the State Council Law.
How does the Supreme Constitutional Court’s ruling relate to this increase?
In November 2024 the Supreme Constitutional Court held unconstitutional the fixed annual rent for residential premises governed by the old-rent laws and called on the legislator to set rent controls. Law No. 164 of 2025 followed.
Sources reviewed for the data in this article
- Text of Law No. 164 of 2025 as published online (unofficial copy) — Arabic
- News report on the Supreme Constitutional Court ruling on fixed rent for residential premises (Youm7) — Arabic
A question you should know the answer to
Question: What is the monthly minimum rent for residential premises in a premium area under Law No. 164 of 2025?
Answer: EGP 1,000 per month; if the result of the multiplier (20 times) is lower, the minimum applies (Art. 4).
What should I do if I cannot handle the situation and have fallen into trouble?
Keep our number with you or with a family member: +201208555806, and call us immediately so that we can intervene as quickly as possible to protect you.
If you have a problem and are unsure how your rent is calculated, or whether your lease is governed by the Civil Code or by the old rent laws, and you want legal advice, you may consult a specialised lawyer.
If you are a party to a similar problem, do not face it alone; contact our firm or pay us a visit, so that we may place our experience at your service and handle your case with the care and precision it deserves.
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This article is general information for legal awareness and does not replace legal advice on your particular situation.