NYC Could Turn “Like Mumbai,” Billionaire Warns
Billionaire real-estate investor Barry Sternlicht said he is considering relocating his firm from New York City because he fears the city may “turn into Mumbai” under the newly-elected mayor, Zohran Mamdani. Sternlicht, who is chairman and CEO of Starwood Capital Group and holds commercial and residential properties in the city, criticised Mamdani’s platform of rent freezes and tenant protections.
Concerns Raised
Sternlicht argued that if tenants know others are not paying rent due to a freeze or eviction restrictions, a wider non-payment trend could emerge, causing economic instability in the rental market. He linked such outcomes to what he described as conditions similar to those in Mumbai, India’s densely-populated commercial hub. Sternlicht also cited rising construction costs and strong union demands in New York as further obstacles to housing supply.
City’s Response and Reality
While Sternlicht’s comments reflect investor anxieties, there is no official declaration of a mass exodus of firms or individuals from New York at this time. The mayor-elect’s key housing proposal remains a rent freeze for some units, but the broader city economy remains strong and diverse. Analysts note that the comparison to Mumbai may be more rhetorical than literal, given significant differences in governance, infrastructure investment and income levels between the two cities.
