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The Serbian parliament has passed a bill that paves the way for a controversial real estate venture overseen by US President Donald Trump's family member Jared Kushner in Serbia's capital city.

The business entity Affinity Partners has aimed to construct a high-end hospitality venue and residential development on the location of the former Yugoslav Army central command.

The ruined structure, which was struck by NATO troops in 1999 throughout its operation to stop the Serbian armed forces actions in Kosovo, holds significant value to some who see it as a reminder and symbol of ongoing resistance to the international coalition.

Serbia's President Aleksandar Vucic, who has pursued close relations with the former president, has backed the development notwithstanding demonstrations and judicial disputes.

Last year, the Serbian administration removed the structure of its heritage classification and agreed a 99-year lease with Kushner's firm, which had set out designs for a $500 million development.

The ruling sparked protests and led to an investigation into whether a Serbian authority had manipulated documentation used during the procedure to change the building's classification.

In a conversation earlier this year, Head of State Aleksandar Vucic defended the initiative, saying "it's crucial to overcome the legacy from 1999".

He added: "We are willing to establish better relations with the United States – I believe that is terribly crucial for this country."

The stalled development timeline culminated last week when Vucic's political group – which has a dominant in the assembly – moved forward with a specific decision on developing the site and prevailed.

Dissenting politicians have described the ruling illegal, including Aleksandar Jovanovic, who termed it as a "crime", and declared the historic site would be replaced with "casinos and spas".

Meanwhile, liberal MP Marinika Tepic remarked the administration was sacrificing the nation's history "to satisfy Trump".

The approval of the law has also been challenged by heritage experts, and comes following a watchdog organization, an transparency body, expressed apprehensions about state-backed initiatives.

Per Serbian news reports prior to his initial presidential run, Trump previously explored developing a hotel in Belgrade.

Earlier this year, the developer informed media outlets he was not aware of his relative's reported earlier consideration.

The decision to pave the path for the development occurs as Vucic's government aims to maintain favorable ties with each of the United States and the Russian Federation.

The nation has been impacted by both the former president's economic policies and penalties on Russian investments in the country, encompassing on its sole petroleum facility, the majority Moscow-controlled Nafna Industrika Srbije (NIS).