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Serbia's legislative body has enacted legislation that sets the stage for a controversial real estate venture overseen by US President Donald Trump's son-in-law Jared Kushner in Serbia's capital city.

The business entity Affinity Partners has planned to build a premium hotel and housing project on the location of the ex Yugoslav Army headquarters.

The destroyed structure, which was struck by Nato troops in 1999 amid its campaign to end Serbia's armed forces operation in Kosovo, holds emotional importance to some who see it as a memorial and representation of continuing opposition to the military alliance.

Serbia's Head of State Aleksandar Vucic, who has maintained strong ties with the former president, has endorsed the development despite demonstrations and judicial disputes.

Last year, the national government removed the property of its heritage designation and approved a long-term rental agreement with the developer's firm, which had proposed designs for a $500m development.

The determination triggered demonstrations and led to an investigation into whether a national official had forged papers employed in the procedure to modify the property's status.

During a conversation recently, President Aleksandar Vucic justified the initiative, remarking "it's essential to transcend the legacy from 1999".

He continued: "We are ready to develop improved relations with the United States – I think that is exceptionally crucial for this state."

The halted development timeline came to a head last week when Vucic's political group – which maintains a dominant in parliament – moved forward with a designated vote on preparing the location and succeeded.

Opposition lawmakers have labelled the outcome against the constitution, including Aleksandar Jovanovic, who described it as a "crime", and stated the significant building would be replaced with "casinos and spas".

Simultaneously, progressive parliament member Marinika Tepic commented the government was jeopardizing the nation's heritage "to appease Trump".

The passage of the law has furthermore been challenged by architectural experts, and follows after a watchdog organization, an integrity institution, raised concerns about state-backed projects.

Per local news accounts before his initial election bid, Trump earlier contemplated developing a accommodation venue in Belgrade.

Earlier this year, the developer told reporters he was not aware of his family member's reported past involvement.

The determination to pave the path for the project arrives as the president's administration aims to sustain favorable relations with both Washington and the Russian Federation.

Serbia has been affected by the two Trump's trade measures and restrictions on Russian assets in the country, comprising on its sole oil-refinery, the mainly Moscow-controlled Nafna Industrika Srbije (NIS).