(Bloomberg) -- Turkey is considering prison terms for landlords found guilty of excessive rent increases after this month’s deadly earthquakes left millions displaced and homeless.
The government is weighing two-to-five year terms, an official with knowledge of the matter told Bloomberg, adding that it hasn’t yet decided what would constitute an unacceptable increase. The official spoke privately because details of the plan haven’t been made public yet.
It comes as the government plans 400,000 new residential units across the quake zone within a year. Around 500 contractors will build the units, costing the government tens of billions of dollars, another official said.
Environment and Urbanization Minister Murat Kurum has also warned construction sector representatives against raising prices of raw materials, a senior official said.
World Bank Estimates $34 Billion in Damage From Turkish Quakes
Even before the Feb. 6 earthquakes, house prices had already surged 56% year on year in January as inflation soared to its highest level in over two decades. Prices rose further in several provinces following the Feb. 6 temblors that killed nearly 50,000 people in Turkey and Syria.
Parliament capped rent increases at 25% last year, but that expires July 1.
--With assistance from Beril Akman.
©2023 Bloomberg L.P.
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