After a couple of years of blockbuster returns, investors in UK and US property are looking at taking profits on their core holdings and contemplating investing in riskier parts of the real estate market. But consultants and managers are urging caution.

Real estate markets have been kind to investors in recent years. According to figures from IPD, a data provider owned by MSCI, the total return on UK property during the 12 months to June 30 was 15.6%, on the back of 16.4% in the preceding 12 months. Most core real estate funds would be satisfied with returns of 8% to 10% a year.