You will be redirected to the website of our parent company, Schönherr Rechtsanwälte GmbH: www.schoenherr.eu
Over a year has passed since the latest amendments to the Serbian Planning and Construction Act, introducing the free-of-charge conversion of the right of use over construction land into ownership rights. This shift has had a strong impact, enabling the acceleration of urban development across Serbia. As the implementation of this change continues to unfold, it has already begun to reshape the real estate market, opening new doors for landowners and developers.
Although the legal framework for free-of-charge conversion is in place, it is essential to carefully prepare for the process. Before initiating the conversion procedure, property owners and developers should first gather all the relevant information regarding the land in question. This includes obtaining the official information on location, which outlines zoning regulations, infrastructure requirements and any restrictions that may affect the land, ensuring that the conversion is feasible.
This step is vital in confirming that the land qualifies for conversion under the new legal framework, as the information on location provides essential details on the specific planning conditions for the land.
The Agency for Urban Planning and Urbanism of the Republic of Serbia plays a crucial role in processing requests for free-of-charge conversion. As the competent authority responsible for the procedure, the Agency ensures that the conversion aligns with Serbia's broader urban planning goals. The Agency verifies that applicants meet necessary conditions for conversion and that the process adheres to regulations and development plans.
With the Agency's involvement, investors benefit from a streamlined process, helping to ensure that urban development is in line with Serbia's strategic planning objectives.
The introduction of free-of-charge conversion has already had an impact on Serbia’s real estate market. Certainly, the amendments have provided a more attractive path for investors and developers. This change has sparked an influx of real estate activity, leading to greater flexibility in land acquisition and development. The mechanism is particularly beneficial for large-scale urban projects, which are now easier to implement due to clearer ownership structures.
As more projects are greenlighted, the urban landscape across Serbia is set to undergo significant transformation, fostering economic growth and modernisation.
The free-of-charge conversion of the right of use over construction land into ownership rights marks a pivotal development for urban planning in Serbia. This reform has opened the door for more efficient land use and a more dynamic real estate market. However, as the conversion process gains momentum, it remains crucial for property owners and developers to thoroughly research all relevant data, including securing the official information on location.
As Serbia's urban development continues to evolve, the free-of-charge conversion process is set to be a key driver of growth and modernisation in the country's real estate sector, creating opportunities for both local and foreign investors to contribute to Serbia's urban future. With the framework for securing land in place and functioning, investors can now shift their focus to green construction, ESG initiatives and sustainable development.
authors: Andrej Zorić and Nikola Babić