Real Estate Tycoon Warns: NYC Could Turn into Mumbai Under New Mayor

Real estate billionaire Barry Sternlicht recently warned that New York City is in for a 'really tough time' under its new mayor-elect, Zohran Mamdani, adding that the city will be turned into Mumbai.

Sternlicht made these remarks in an interview with CNBC. Speaking on Mamdani's housing policy, he said, '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 neighbour finds out the neighbour 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.'

After Mamdani won the New York City mayor election on November 4, he vowed to immediately begin working to fulfil his campaign promises, which included a rent freeze in rent-stabilised apartments, creating a universal free childcare programme for children ages 6 months to 5 years, providing free bus services, and opening five city-owned grocery stores, one in each borough.

The Starwood Capital Group CEO blamed overly expensive development and management costs on unions and added that it is only expected to get worse once Mamdani's administration comes in. He also stated that he is planning to move his team out of the city. 'Over $100 million, every project in New York has to go union, and it’s super expensive. It leads to extremely expensive housing. And other developers have tried to cut deals with the unions, but they rule New York, and that’s one of the key reasons the blue states are so expensive, and they’re so difficult to add supply of housing.'

Disagreeing with Mamdani's strategy, the billionaire property magnate said, 'The core issues are not what he’s focusing on. We need to increase housing. That’s not going to happen easily, right? You need serious subsidies from the government if they want us to work with unions. The unions have to be more accommodating on their work laws and the wages and everything else, otherwise you can’t add economically.'

Sternlicht flagged concerns over public safety, fearing it would deteriorate under Mamdani, who, on his campaign trail, was confronted over his previous calls to 'Defund the Police'. He said that if people feel their kids aren't safe on the streets, they would prefer pulling them out of school and leaving. 'He further added that if Mamdani defunds the police or doesn't give them the honour they deserve, the city is in for a really tough time.'

Sternlicht also expressed optimism that New York City will survive and added that it will probably get a lot worse before getting better. Commenting further, he added that instead of focusing on taxing those who have achieved success, which could drive them away and leave the city dependent on federal aid, a leader should aim to inspire people to succeed and strengthen their belief in the American dream. 'Maybe he’ll have, he’ll learn from history. Maybe the million people who voted for him won’t realise that socialism has never worked anywhere on the planet Earth, ever.'

Uganda-born Mamdani became New York City's first Muslim mayor, marking a watershed moment for America's largest city, making him both the youngest mayor in a century and the first Muslim mayor.