Billionaire warns New York could “turn into Mumbai” under Mamdani’s leadership

Billionaire real estate investor Barry Sternlicht has cautioned that New York City could “turn into Mumbai” under the upcoming administration of mayor-elect Zohran Mamdani.

The Starwood Capital Group Chairman and CEO criticised the city’s union rules and rising costs, suggesting that these policies could drive businesses and investors away.

Speaking to CNBC’s Property Play, Sternlicht said his firm is considering relocating from New York following Mamdani’s victory. He added that other companies might also move their operations due to what he described as anti-business policies and escalating project expenses.

Starwood Capital Group, which owns significant commercial and residential real estate across New York and operates offices in Midtown Manhattan, has long been involved in major development projects. However, Sternlicht noted that recent regulations are discouraging further investment.

He said that in New York, any project worth over $100 million was required to go through unions, making construction “super expensive.” This, he argued, resulted in extremely high housing costs. “Other developers have tried to cut deals with the unions, but they rule New York,” he said, adding that this was one of the key reasons blue states were so costly and struggled to increase their housing supply.

He further criticised policies that prevented landlords from evicting tenants who failed to pay rent, saying that the far left had gone so far as to claim tenants did not have to pay. He argued that when landlords were unable to evict such tenants, others followed suit after realising their neighbours were not paying either, warning that such measures would eventually turn New York City into Mumbai.

Sternlicht’s comments highlight concerns among several business leaders who fear that new regulations could hinder economic growth and investment in the city.

Mamdani’s office has not yet responded to his remarks.