‘NYC will turn into Mumbai’: US real estate billionaire warns of exodus under Zohran Mamdani

Real estate billionaire Barry Sternlicht has issued a stark warning about the New York city’s future under mayor-elect Zohran Mamdani, suggesting that his company may relocate operations due to what he described as a looming crisis in development costs and public safety.

Sternlicht, the CEO of Starwood Capital Group, criticised New York’s powerful trade unions for driving up the costs of construction and management, arguing that the problem would worsen under Mamdani’s progressive agenda.

“Every project in New York has to go union, and it’s super expensive,” he told CNBC. “It leads to extremely expensive housing.”

Following his election victory, Mamdani, a Democratic Socialist and the city’s first Muslim and Indian-origin mayor-elect, pledged to implement sweeping social programmes.

His platform includes a rent freeze on rent-stabilised apartments, free bus service, universal free childcare for children aged six months to five years and five city-owned grocery stores, one in each borough.

Sternlicht warned that such policies could discourage investment and worsen housing shortages.

“Developers can’t add supply economically unless the government provides massive subsidies or the unions become more flexible,” he said. “Otherwise, you just can’t make the numbers work.”

He also voiced concern over public safety, recalling Mamdani’s earlier calls to “defund the police.” “If people don’t feel their kids are safe, they’ll leave,” Sternlicht said.

“If he defunds the police or doesn’t give them the prestige they deserve, the city’s in for a really tough time.”

Sternlicht compared the potential outcome to Mumbai, citing rising construction costs, powerful trade unions and high regulatory hurdles.

Sternlicht added that Starwood Capital Group is already considering moving its Midtown Manhattan office.

“Maybe he’ll learn from history,” he said. “Maybe the million people who voted for him won’t realise that socialism has never worked anywhere on the planet Earth.”

Despite the criticism, Mamdani — who ran on a message of equity and affordability — drew broad support from New York’s diverse electorate, winning four out of five boroughs in last week’s election.