Highlights

Following the enactment of law no. 164 of 2025 (the “New Rental Law”), which took effect on 5 August 2025, cabinet decree no. 53 of 2025 (the “Decree”) was issued and published in the Official Gazette on 3 September 2025 to implement the New Rental Law. The Decree sets out in detail the conditions, timelines, and procedures for the allocation of alternative residential and non-residential units to affected tenants, i.e., those whose lease agreements are subject to mandatory termination under the New Rental Law. It also specifies applicants’ eligibility criteria and establishes rules for prioritising the allocation of units to eligible tenants.

It is worth recalling that the New Rental Law establishes a framework to gradually phase out the old rental regime under law no. 49 of 1977 and law no. 136 of 1981 (the “Old Rental Laws”). The New Rental Law aims to balance landlords’ property rights with protections for affected tenants through a state-led mechanism for the allocation of alternative units, while also setting clear timelines for the mandatory termination of lease agreements governed by the Old Rental Laws.

The Decree entered into force on the day following its publication in the Official Gazette (the “Effective Date”). 

Key Provisions of the Decree

I. Competent Authorities

The Decree designates several public bodies as the competent state authorities (the “State Authorities”) responsible for managing the allocation process of the state-provided units to affected tenants. These include:

• The Ministry of Housing, Utilities and Urban Communities.
• Municipalities.
• The New Urban Communities Authority.
• The Urban Development Fund.
• The Social Housing and Mortgage Finance Fund (the “SHMFF”).

The SHMFF is entrusted with coordinating with State Authorities to identify the number of units available for allocation across governorates and to present the details of these units to the Cabinet for approval. In addition, a new unit, the Central Administration for Alternative Leasing and Housing (the “Central Administration”), will be established within the SHMFF and will be responsible for receiving and reviewing the unit allocation applications.

The Decree also mandates the establishment of a unified electronic platform (the “Electronic Platform”) through which allocation applications and related appeals are submitted. The Electronic Platform must be developed and operational within one (1) month from the Effective Date.

II. Allocation Eligibility Criteria

The Decree strictly defines the eligibility criteria and imposes stringent conditions for the allocation of the state-provided alternative units to the affected tenants. The key conditions that must, inter alia, be met are as follows:

• The applicant must be residing in the leased unit and must not have left such unit unoccupied for a period exceeding one (1) year without a justified reason.
• The applicant must not own another unit that is suitable for the same use as the leased
• The unit requested for allocation and the leased unit to be vacated under the New Rental Law must serve the same purpose and be located within the same governorate.

III. Allocation Mechanisms and Timelines 

i. Allocation Mechanisms:

The Decree stipulates that the units may be allocated to eligible applicants through one (1) of the following mechanisms:

• Lease-to-own.
• Ownership via mortgage financing.
• Cash purchase.
• Installment-based ownership.

ii. Allocation Process Key Timelines:

The applications for the allocation of state-provided alternative units, along with the required documentation and information, in accordance with the Decree, are to be submitted primarily online via the Electronic Platform. Alternatively, applicants may submit their applications in person at Egyptian post offices.

• Application Timeline: Applications must be submitted within three (3) months from the launch of the Electronic Platform.
• Review Period: The Central Administration will review all submitted applications and supporting documentation within two (2) months from the end of the application timeline. If any documents are missing or incomplete, applicants will be notified and granted one (1) month to provide the required documents.
• Field and Digital Verification: Where necessary, field and/or digital verification will be conducted within four (4) months following the conclusion of the applications review phase.
• Appeal Timeline: In the event of an application rejection, the applicant may submit an appeal using the same method as the original application (i.e., online or in-person) within fifteen (15) days of receiving the rejection notification. Appeals will be reviewed and decided within one (1) month of submission.

IV. Prioritisation Criteria

Following the review and assessment of the applications, the Central Administration will prepare two (2) separate lists of eligible applicants:

• Original tenants or their spouses, if the lease had been extended to them prior to the New Rental Law.
• Other successors to whom the lease was extended.

Each list will be ordered, within each governorate, according to the following prioritisation criteria:

1. Income Level (from lowest to highest, as determined by the SHMFF):

• Most vulnerable groups (i.e., social groups in need of state support).
• Low-income class.
• Middle-income class.
• Above-middle-income class.

2. Social Status:

• Married with dependents.
• Divorced/widowed with dependents.
• Married without dependents.
• Single/divorced/widowed without dependents.

Note: In case of parity, families with greater number of dependents will be given priority.

3. Age: Older applicants will be given priority.

Note: If two (2) or more applicants tied under the first criterion (income), priority will be determined according to the second criterion (social status). If parity remains after applying the second criterion, the third criterion (age) will be applied to determine priority.

V. Approval and Publication of Results

Within one (1) month of finalising the priority lists, the SHMFF submits them to the Minister of Housing, who will then present them to the Cabinet for approval. Once approved, the results will be published on the Electronic Platform, and applicants will also be notified via SMS of their allocation status (accepted or rejected) and their priority ranking.

VI. Obligations of Allottees

Successful applicants must pay the required financial dues within three (3) months from the date of SMS notification confirming unit allocation. Failure to do so will be considered a waiver of the applicant’s priority ranking.

Additionally, the allocated units must be used strictly for the purpose of which they have been allocated. Any violation of this obligation will result in cancellation of the allocation and the recovery of the unit without prior notice or court judgment.

Conclusion

The Decree operationalises key aspects of the New Rental Law, providing a clear and time-bound framework for the allocation of alternative units. Affected tenants are advised to promptly assess their eligibility, prepare the required documents, and monitor the launch of the Electronic Platform. Landlords, in turn, benefit from a structured process that facilitates timely recovery of their properties. Strict compliance with the procedural requirements and timelines will be essential for all parties.

The contributors to this article are Dr. Mohamed Fathy, Partner and Head of Real Estate, Tourism and Hospitality, and Hannah Mahran, Junior Associate.