Provoke is more appropriate in the context of warfare.
Since you were simply bringing up a current affair, it would suffice to write
"A fire incident took place in a subdivided flat last Saturday. (You should have provided more details here, such as the number of casualties or the causes). It aroused controversy regarding whether subdivided flats should be permitted for commercial activities, and housing."
Provoke is more appropriate in the context of warfare.
Since you were simply bringing up a current affair, it would suffice to write
"A fire incident took place in a subdivided flat last Saturday. (You should have provided more details here, such as the number of casualties or the causes). It aroused controversy regarding whether subdivided flats should be permitted for commercial activities, and housing."