Billionaire Barry Sternlicht Warns NYC Could Turn into Mumbai Under Mamdani’s Leadership
Real estate mogul Barry Sternlicht criticizes New York's trade unions and Mayor-elect Zohran Mamdani's policies, threatening to relocate his business.
Real EstateTrade UnionsZohran MamdaniBarry SternlichtNew York CityReal Estate MumbaiNov 12, 2025
Following his election, Mamdani has promised to implement several ambitious policies, including freezing rents in rent-stabilised apartments, offering free bus services, establishing a universal free childcare programme for children aged 6 months to 5 years, and opening five city-owned grocery stores, one in each borough.
Sternlicht told CNBC, “Projects over $100 million in New York must use union labour, which is extremely costly and results in very expensive housing.” Starwood Capital Group, Sternlicht’s company, holds both commercial and residential properties and partnerships in New York. He noted that other developers have tried to negotiate with the unions, but the unions’ dominance in New York makes it nearly impossible to reduce costs, thereby hindering the addition of housing supply.
Commenting on Mamdani’s housing policy, Sternlicht said, “The far left believes tenants shouldn’t have to pay. If tenants don’t pay and can’t be evicted, others will follow suit, leading to economic chaos similar to Mumbai.” Despite acknowledging that Mamdani is addressing the city’s core issues, Sternlicht stressed that achieving these goals requires significant government subsidies and more flexible union work laws and wages.
Public safety is another area of concern for Sternlicht. Mamdani has faced criticism during his campaign for his previous calls to “Defund the Police.” Sternlicht warned, “If parents feel their children are unsafe, they will withdraw them from school and leave the city. If Mamdani reduces police funding or fails to respect and honour them, the city will face severe difficulties.” He revealed that his company is already considering relocating from Midtown Manhattan.
“Perhaps Mamdani will learn from history. Maybe the voters won’t realise that socialism has never succeeded anywhere on Earth,” Sternlicht added. Mamdani, New York’s first Muslim mayor-elect and the first of South Asian descent, won the support of a diverse array of voters in the city and secured victories in four out of the city’s five boroughs.
Despite the criticisms, Mamdani’s supporters believe that his policies are necessary to address the city’s systemic issues, including affordable housing, public transportation, and public safety. The coming years will be crucial in determining whether his ambitious plans can be implemented effectively without causing economic turmoil.
Frequently Asked Questions
Who is Barry Sternlicht?
Barry Sternlicht is a real estate billionaire and the CEO of Starwood Capital Group. He is known for his investments in both commercial and residential properties in New York City.
What are Zohran Mamdani's key policy proposals?
Zohran Mamdani's key policy proposals include freezing rents in rent-stabilised apartments, offering free bus services, establishing a universal free childcare programme for children aged 6 months to 5 years, and opening five city-owned grocery stores, one in each borough.
Why is Barry Sternlicht considering relocating his business?
Barry Sternlicht is considering relocating his business due to the high costs of real estate development and management in New York, which he attributes to the dominance of trade unions. He believes these issues will worsen under Mamdani's leadership.
What are the main concerns about public safety under Mamdani's leadership?
The main concerns about public safety under Mamdani's leadership stem from his previous calls to 'Defund the Police.' Critics, including Barry Sternlicht, warn that reducing police funding could lead to increased crime and make the city less safe.
What is the significance of Mamdani's election?
Zohran Mamdani's election is significant because he is New York City's first Muslim mayor-elect and the first of South Asian descent. He won the support of a diverse array of voters and secured victories in four out of the city's five boroughs.
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