Mumbai’s failure to lure any bidders in the first government land sale in at least 18 months may cause prices in that area to fall as India’s financial hub seeks to develop the reclaimed marshland into a key business district.

Vivek Dahiya, chief executive officer of New Delhi-based GenReal Property Advisors, said. “The Mumbai real estate market is going through a rare situation, where several micro- markets are going to witness over-supply because lots of projects coming up in some areas and demand drying up in some.”

The five likely bidders who attended a preliminary meeting last month for the sale of the site in the city’s Bandra-Kurla Complex didn’t submit offers yesterday, said Dilip Kawathkar, joint project director and spokesman for the Mumbai Metropolitan Region Development Authority. The land was valued at a minimum 4.35 billion rupees ($95 million) by the agency.