New York Real Estate Mogul Warns of Mumbai-Like Future Under Mamdani's Leadership
New York City real estate billionaire Barry Sternlicht has expressed deep concern over the future of the city under the leadership of Eric Adams, who recently won the mayoral election. Speaking to CNBC News, Sternlicht warned that New York could face conditions akin to those in Mumbai, a city known for its stark contrasts between wealth and poverty.
Sternlicht, the CEO of real estate company Starwood Capital Group, is a prominent figure in New York's business community. His concerns are rooted in the policies proposed by Adams during his election campaign, which include freezing rent to prevent increases, starting a free bus service, and providing free childcare for young children.
According to Sternlicht, these policies, particularly the rent freeze, could have severe repercussions for landlords. He stated, 'If a tenant doesn't pay rent and cannot be evicted, then others won't pay either. Gradually the whole system will break down, and New York will become like Mumbai.'
Starwood Capital Group, under Sternlicht's leadership, has been a significant player in the New York real estate market. Sternlicht pointed out that the cost of real estate in New York is already exorbitant, largely due to the influence of labor unions. These unions, he explained, increase the cost of any project and make it difficult for the average person to build or buy homes.
'Every project in New York has to be done with unions, which greatly increases the cost. This is why houses here are so expensive,' Sternlicht said. He acknowledged that Adams is addressing the right issues, such as the need to build more houses in the city, but emphasized that implementation will be challenging without government support and relaxed union rules.
Sternlicht also raised concerns about public safety. He reminded the public that Adams had previously discussed cutting the police department's budget. 'If people feel their children are not safe on the streets, they will leave the city. If the police do not get respect and support, the situation will deteriorate,' he warned.
His company, Starwood Capital Group, is already considering relocating its office from Midtown Manhattan. Sternlicht concluded by stating, 'Hopefully, Adams will learn from history, because socialism has not succeeded anywhere in the world so far.'
Sternlicht's comments highlight the ongoing debate over the direction of New York City's future, with concerns about economic policies, public safety, and the impact on the real estate market. As the city prepares for a new administration, the views of influential figures like Sternlicht will continue to shape the conversation.
