The source explained, “The state is renting a significant number of its headquarters from citizens. These rented premises mainly consist of facilities, stockrooms and outlets of the Ministry of Supply, offices and departments of the Ministry of Social Solidarity, civil registry departments and others.” Almost all of these properties are rented from private citizens. The ruling means that a citizen landlord can request the evacuation of leased premises, expelling in this case an entity affiliated with a ministry or a state department.

The May 5 ruling made waves in Egypt's political and legal circles. A government source told Al-Monitor on condition of anonymity that the ruling could lead to a crisis between the government and the owners of thousands of premises leased to government institutions, civil registry offices and trade union headquarters across Egypt.

The abolished provision stated, “The landlord may not demand the tenant vacate the leased premises even after the expiry of the term of the lease agreement .” The new ruling allows landlords to end old lease agreements that have persisted long past their initial contract periods.

On May 5, the Egyptian Supreme Constitutional Court nullified a provision in a 1981 law concerning the relationship between landlords and their tenants .

CAIRO — A recent judicial ruling in Egypt will allow property owners to evict government entities and companies leasing space under decades-old rental contracts, as the country works to address antiquated rent laws.

Most of the leases affected by this decision involve trivial rental fees that were frozen under the old rental Law No. 49 of 1977. A property of 500 square meters (1,600 feet) in Cairo, for example, may be rented in return for not more than 300 Egyptian pounds ($17) per month.

The source predicted that many citizens will begin legal proceedings to expel these institutions from their properties. The courts will have to rule in favor of the landlords, since the Egyptian Supreme Constitutional Court is the highest judicial authority and its rulings are final.

A high-level judicial source told Al-Monitor on condition of anonymity, “Under this ruling, any Egyptian citizen may request their tenant, in this case a government institution or a trade union, to vacate the leased premises because it no longer has the right to occupy the leased premises for an indefinite period, as was the case before the ruling.”

He stressed that the status quo established by the old rental law was unfair to the citizens who owned the leased real estate properties. “But changing this situation now will trigger a crisis for the state,” he warned. “The ruling rendered by the Supreme Constitutional Court enters into force as of the day following the end of Egypt’s current parliamentary session expected in July. In implementation of the ruling, owners of real estate properties leased under the old rental law for an indefinite period will be entitled to expel the tenants. Then there will be a crisis.”

The judicial source expects thousands of citizens to file lawsuits to recover their properties after the expiry of the rental periods agreed upon in their lease contract.

In its ruling, the court described the nullified paragraph as “involving an encroachment upon the logical limits of free will, which is an indispensable part of personal freedom.” The court further argued that the lack of personal freedom in a lease relationship violates Article 54 of the Egyptian Constitution, which describes personal freedom as “a natural, guaranteed and inviolable right.”

Mohammed Abdel Shakour, a citizen who owns some properties rented by government institutions, said he will file a lawsuit to retake his property. The Ministry of Supply has been leasing 300 square meters in his basement in return for a monthly fee of 200 pounds (around $11.50).

“This is unfair. I could have invested my property better or leased for a much higher rental fee,” he told Al-Monitor. “I would have reaped profits and improved my family’s standard of living.”

Shakour added that the Ministry of Supply has used the large space in his basement since the 1970s to store flour and critical commodities. He noted that the rent set in the contract at 200 pounds had once been fair, but that was long ago. He argued that it is absolutely not reasonable that his property be used in return for a trivial amount as if it had been appropriated by the state.

Shakour complained about mice and insects in his home attracted by the foodstuffs in his basement such as legumes, beans and other grains. The situation has caused him mental and physical distress. “This is an usurpation of my right to rent my property for an amount in line with the prevailing market prices to meet my needs,” he said.

Lawyer Ahmed Assiouti agreed that the ruling will lead to a crisis for the state, which will be forced to find other accommodations for its ministries and service sectors.

He told Al-Monitor, “The state has three possible alternatives. It may stay in the leased premises but under new terms and updated contracts guaranteeing the rights of the landlord and increasing the rent. It may also build new headquarters in various governorates and terminate its previous leases, but this choice will cost time and money."

Assiouti went on, “The state could also exploit its unused properties and premises. The state owns a lot of land and real estate properties in the various governorates. These were built specifically to be used in cases of natural disasters such as earthquakes and the like. Some of these premises are abandoned or unequipped, but after the recent ruling they may represent the perfect solution.”