NYC's Future in Jeopardy as Billionaire Warns of Mumbai-Like Decline
Billionaire property magnate Barry Sternlicht is considering relocating his firm from New York City due to concerns over Mayor Zohran Mamdani's policies, which he fears could turn the city into a Mumbai-like environment.
New York CityZohran MamdaniBarry SternlichtReal EstatePublic SafetyReal Estate MumbaiNov 11, 2025
In a conversation with CNBC, the billionaire drew a controversial comparison between New York and Mumbai, saying, “The far-left gets really nuts and says the tenants don’t have to pay. Well, you can’t kick them out if they don’t pay. So, the neighbor finds out the neighbor isn’t paying, and they don’t pay, and the next guy doesn’t pay, and then you’re basically going to turn New York City into Mumbai.” He claimed that such an attitude would create a ripple effect, undermining the city’s rental market and property stability.
During his campaign, Mamdani pledged to strengthen tenant protections and extend the time it takes to process evictions. However, none of his proposed policies—including a rent freeze for stabilized tenants—would allow nonpayment of rent. Despite this, Sternlicht’s concerns reflect a broader apprehension among business leaders about the direction of the city under the new administration.
Sternlicht also warned that a decline in public safety could accelerate the city’s downturn under Mamdani’s administration. “If people feel like their kids aren’t safe on the streets, they will pull them out of school and they will leave. And if he defunds the police or he doesn’t give them the honor and prestige they deserve, I think the city’s in for a really tough time,” he told CNBC.
Sternlicht’s Starwood Capital Group is one of the world’s largest real estate investment firms, with $115 billion in gross assets under management. The company controls Starwood Property Trust and has financed several major developments, including The Greenwich by Rafael Viñoly and a 46-storey luxury residential tower in New York. The potential exodus of such a significant player from the city could have far-reaching economic implications.
While Mamdani’s policies aim to address issues of housing affordability and tenant rights, the concerns raised by Sternlicht highlight the delicate balance between progressive reforms and maintaining a stable business environment. As the city navigates these challenges, the coming months will be crucial in determining whether New York can continue to thrive or if it faces a period of significant upheaval.
Frequently Asked Questions
Who is Barry Sternlicht?
Barry Sternlicht is a billionaire property magnate and the chairman of Starwood Capital Group, one of the world’s largest real estate investment firms.
What policies did Zohran Mamdani propose during his campaign?
Zohran Mamdani proposed strengthening tenant protections, extending the time it takes to process evictions, and a rent freeze for stabilized tenants.
Why is Barry Sternlicht considering moving his firm out of New York?
Sternlicht is concerned that Mayor Zohran Mamdani's policies will lead to tenants not paying rent, a decline in the city’s rental market, and a potential decline in public safety.
What is the significance of comparing New York to Mumbai?
The comparison is used to highlight the potential for a decline in the quality of life and economic stability in New York City if Mamdani's policies are implemented.
What is Starwood Capital Group's role in New York's real estate market?
Starwood Capital Group is one of the world’s largest real estate investment firms, with significant investments in New York, including major developments like The Greenwich and a 46-storey luxury residential tower.
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