Abu Dhabi's real estate price growth could be hit in the long-term by the global credit crisis but demand for property is likely to remain stable, Citi said in a research report released on Sunday.

It said foreign buyer demand is not enough to soak up oncoming supply in the next few years because of a serious housing shortage in the UAE capital.

'But a sustained global credit crunch that keeps foreign buyers away for multiple years could constrain long-term price growth,' the report said.

'It would not alter the volume demand for Abu Dhabi's real estate,' it added.

Foreign finance is not needed to make projects underway viable. 'Greater reliance on domestic buyers and financing may be accompanied by more restrictions on foreign equity ownership,' the report said.

Abu Dhabi Finance, a mortgage finance joint venture, was set up recently by Abu Dhabi's top developers Aldar and Sorouh in partnership with Abu Dhabi Commercial Bank and government investment arm Mubadala Development Company.

Sorouh cut its foreign equity ownership limit from 20 per cent to 15 per cent in November.

Aldar, with a current foreign ownership limit of 40 per cent, has issued a convertible bond to Mubadala which should raise Mubadala's stake to 19 per cent from the current 15 percent in 2011.-Reuters