Egypt: Old lease contracts for companies and institutions to expire in March 2027
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Egyptian leases held by legal entities under Law 10 of 2022 will expire in March 2027, after which tenants must vacate or sign new agreements.
Old lease contracts held by legal entities in Egypt, which are governed by Law No. 10 of 2022, will expire in March 2027, and interest among landlords and tenants has risen as the deadline approaches.
The law, ratified by Egyptian President Abdel Fattah al-Sisi and published in the Official Gazette in March 2022, established new regulations governing the rental relationship between landlords and tenants under old lease agreements. It grants "legal person" tenants a five-year transitional period from its implementation date, with a 15 per cent annual rent increase during that period.
At the end of the five-year period, in March 2027, existing leases subject to the law expire and the tenant becomes obligated to return the leased property to its owner. The term "legal persons" covers bodies and entities that own or lease properties under old lease agreements, including companies, associations, institutions, unions, ministries and public authorities.
If a tenant wishes to remain in the unit after the grace period, both parties can agree on a new lease contract under terms agreed between them. The old contract does not automatically continue once the grace period expires; continuation of the lease relationship depends on concluding a new agreement between the parties.