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Serbia's parliament has enacted a bill that sets the stage for a disputed real estate project overseen by US President Donald Trump's son-in-law Jared Kushner in the capital.

The business entity Affinity Partners has planned to build a high-end hotel and apartment complex on the site of the ex Yugoslav Army headquarters.

The damaged building, which was struck by Nato troops in 1999 during its intervention to stop the Serbian military actions in Kosovo, holds significant meaning to some who consider it as a monument and symbol of continuing opposition to the military alliance.

Serbia's Head of State Aleksandar Vucic, who has maintained close relations with the former president, has endorsed the plans in the face of demonstrations and judicial objections.

Previously, the national administration revoked the property of its heritage status and approved a 99-year contract with Kushner's organization, which had set out plans for a half-billion dollar construction.

The decision provoked demonstrations and led to an probe into whether a Serbian authority had falsified documentation employed throughout the process to modify the structure's status.

Through a interview in June, Head of State Aleksandar Vucic supported the proposal, saying "it's essential to move past the legacy from 1999".

He continued: "We are prepared to develop stronger connections with the America – I believe that is extremely important for this state."

The halted approval procedure reached a climax recently when Vucic's faction – which has a majority in the legislature – pushed ahead with a designated ballot on preparing the area and won.

Dissenting representatives have labelled the ruling illegal, among them Aleksandar Jovanovic, who described it as a "offense", and asserted the historic site would be exchanged with "gambling venues and hot tubs".

Meanwhile, centre-left representative Marinika Tepic commented the government was compromising the state's history "to please the former president".

The passage of the law has additionally been challenged by design specialists, and comes following an anti-corruption group, an integrity organisation, raised concerns about state-backed initiatives.

According to national press coverage prior to his initial presidency bid, the former president in the past considered constructing a hotel in Belgrade.

In March, Kushner stated media outlets he was unfamiliar of his family member's alleged past involvement.

The resolution to clear the way for the development occurs as the president's cabinet seeks to preserve good relations with the two America and Moscow.

Serbia has been affected by the two Trump's economic policies and penalties on Moscow's interests in the country, encompassing on its only oil-refinery, the mainly Russian Federation-held Nafna Industrika Srbije (NIS).