This is not the first time that the completion deadline has been pushed back, and entrepreneurs and residents hope they will be able to travel on the track from Tallinn to the summer capital Pärnu by 2032.

Ingmar Saksing, a real estate agent at LVM Kinnisvara, said investors have factored this into their plans.

"Today we can talk about growing interest in the area where a terminal will be built, as in Ülemiste in Tallinn. Following the same logic, it is clear that property prices in this area and interest in the area are higher than before," he said.

The Part spa hotel will be completed by next autumn, adding 450 hotel beds to Pärnu. Sari Sopanen, head of the major development project, said the railway delay has not changed the hotel's development plans, but the completion of Rail Baltic would certainly help increase the number of customers.

"If Pärnu were connected to two international airports, Tallinn and Riga, then of course that would be a very, very big advantage for our industry and for us as well," Sopanen said.

"We believe in Pärnu, our location is ideal, it is a very good spot on Pärnu beach," she added.

Property prices in the summer capital have been steadily rising by two to three percent annually over the past decade, including inflation. The delay in Rail Baltic's completion has not caused any major jumps in prices, in either direction.

"People consider other reasons much more when deciding to change their place of residence, plus the fact that the arrival of the railway in Pärnu does not mean that everyone will want to move to Pärnu. Perhaps they will just come during the day and travel back home in the evening," said Terje Võrk, a real estate agent at Arco Vara.

In recent years, new real estate developments have sprung up in several parts of the city. Saksing said this is welcome, because when supply emerges, demand will follow.

"In total, 400 apartments are under construction and on offer, and at the current pace it will take up to two years to sell them, assuming no more are added," Saksing said.

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