'New York Will Become Mumbai': Billionaire's Warning To NY On Mamdani's Rise

Real estate billionaire Barry Sternlicht has warned that New York City could face “a really tough time” under mayor-elect Zohran Mamdani, comparing the potential fallout of his policies to conditions in Mumbai.

In a sharp critique following Mamdani’s win, the Starwood Capital Group CEO said that high union costs and aggressive rent control measures could cripple the city’s property sector. “Over $100 million, every project in New York has to go union, and it’s super expensive. It leads to extremely expensive housing,” Sternlicht said in an interview with CNBC.

He added that while some developers have attempted to negotiate with unions, “they rule New York,” making it difficult and costly to increase housing supply. The billionaire warned that Mamdani’s proposed rent freeze could have a domino effect on non-payment among tenants, saying, “You can’t kick them out if they don’t pay… and then you’re basically going to turn New York City into Mumbai.”

Mamdani, a Democratic Socialist and the city’s first Muslim mayor-elect of South Asian descent, campaigned on progressive promises such as rent freezes for stabilized apartments, free childcare, universal bus services, and city-run grocery stores.

Also Read: From Uganda to City Hall: Who Is Zohran Mamdani, the Indian-Origin Democrat Now New York City’s First Muslim Mayor | Republic World

Sternlicht argued that while Mamdani’s focus on housing is valid, the policies could backfire unless the government provides subsidies or unions ease wage and work rule restrictions. “You need serious subsidies from the government if they want us to work with unions,” he said.

He also expressed concern over public safety, recalling Mamdani’s earlier support for “Defund the Police.” Sternlicht cautioned that if safety worsens, families will leave the city, warning, “If people feel their kids aren’t safe on the streets… the city’s in for a really tough time.”

Despite the criticism, Mamdani’s victory—winning four of five boroughs—underscores New York’s shifting political mood toward progressive leadership.