Why Egypt is raising rents after decades of fixed prices
Egypt’s parliament has approved a new law that will slowly raise rents for people living in homes with very old lease agreements.
These contracts, some of which started more than 60 years ago, have kept rents low for decades.
The change is one of the most significant updates to Egypt’s housing system in years.
The law gives tenants of these homes seven years to adjust to higher rents.
Businesses renting shops or offices will also have five years and the increase in rent prices will largely depend on where the home or shop is located.
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In wealthier areas, rent will increase the most, with a minimum payment of 1,000 Egyptian pounds ($20.14) a month.
In other areas, the minimums will be lower, starting from 250 pounds ($5.03). The rent will also go up by 15% each year during the transition.
The government says these changes are needed to make the housing system fairer, but many worry that older and poorer tenants could be forced out.
One member of parliament, Abdelmonem Imam, said, “This law affects over 500,000 Egyptians aged 60 and above. We cannot support eviction without offering dignified alternatives.”
A new website will be launched so people can register and apply for help where there are challenges with the new rules. Older residents and low-income families are expected to be first in line.
The law is meanwhile awaiting approval and signing by the president before it comes into effect.
This story is written and edited by the Global South World team, you can contact us here.
