Volatile property markets mean investors need to be more strategic about targeting assets and less reliant on overall market uplift, Adrian Harrington, managing director of Folkestone Funds Management, says.

Mr Harrington, who looks after more than $960 million invested in listed and unlisted real estate funds at Folkestone, expects A-REITS to post total capital and income returns of about 10 per cent, which is down on last year but about four times one-year bank term deposits and Australian 10-year bond yields.