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The Serbian parliament has enacted a law that sets the stage for a contentious real estate project overseen by US President Donald Trump's family member Jared Kushner in Belgrade.

His firm Affinity Partners has sought to build a high-end hospitality venue and residential development on the site of the previous Yugoslav Army headquarters.

The ruined building, which was struck by North Atlantic Treaty Organization troops in 1999 amid its intervention to halt Serbia's armed forces actions in Kosovo, holds symbolic meaning to many who view it as a monument and emblem of persistent resistance to the international coalition.

Serbia's Head of State Aleksandar Vucic, who has maintained strong ties with Trump, has backed the development notwithstanding protests and judicial disputes.

Last year, the national government revoked the structure of its conservation classification and authorized a 99-year rental agreement with the developer's company, which had proposed designs for a $500m project.

The decision triggered public gatherings and led to an inquiry into whether a Serbian authority had manipulated papers utilized throughout the method to alter the structure's designation.

Through a interview earlier this year, Head of State Aleksandar Vucic supported the proposal, saying "it's crucial to transcend the legacy from 1999".

He elaborated: "We are willing to develop better relations with the US – I believe that is exceptionally important for this state."

The delayed approval timeline came to a head recently when the president's party – which has a dominant in the assembly – moved forward with a specific vote on clearing the area and succeeded.

Rival politicians have labelled the decision unconstitutional, among them Aleksandar Jovanovic, who termed it as a "violation", and declared the historic site would be substituted with "gambling venues and hot tubs".

Simultaneously, centre-left MP Marinika Tepic stated the authorities was compromising the state's heritage "to please Trump".

The approval of the bill has additionally been challenged by architectural professionals, and comes after Transparency Serbia, an transparency body, voiced worries about publicly-endorsed projects.

Per Serbian news reports before his maiden election run, Trump earlier considered building a hotel in Belgrade.

Last March, Kushner told media outlets he was not aware of his father-in-law's reported earlier involvement.

The decision to pave the path for the development comes as the president's cabinet seeks to sustain favorable relations with both America and Russia.

The country has been impacted by each of Trump's trade measures and penalties on Moscow's interests in the country, comprising on its only petroleum facility, the mainly Russian Federation-held Nafna Industrika Srbije (NIS).