Previously, Serbian legislation granted private investors ownership of commercial territories exclusively for agricultural use, and the lease term was no more than 99 years.
Due to the old rules that made it difficult to exercise ownership rights, many potential investors were deterred from investing in the Serbian real estate market, since it took twice as long to obtain permits as in any other country in the Balkan region.
Minister of Urban Development and Ecology Oliver Dulic, whose ministry introduced the new law, said: "The law will eliminate the problems associated with lengthy procedures and inefficient management."
In addition, the law is intended to resolve the confusing situation of ownership in the country. For example, the State Department for Real Estate received about 70,000 claims for the return of land and property nationalized during the existence of the united Yugoslavia.
However, some diplomats and investors are not convinced that the new law will resolve a complex dispute over the ownership of real estate in Serbia.
Brad Bell from the U.S. Embassy in Belgrade, in particular, said: "We see that the government is trying to resolve disputes related to design and construction by reducing administrative procedures and bureaucracy, but the current bill does not take into account many important issues."
"It is difficult to understand how this law can be implemented if the issue of compensation for damages has not been resolved before," the diplomat added.
