Embracing Change: Serbia's Latest Amendments To The Planning And Construction Act

• Published date: 25 August 2023
• Subject Matter: Environment, Real Estate and Construction, Energy and Natural Resources, Energy Law, Environmental Law, Construction & Planning, Real Estate, Landlord & Tenant - Leases
• Law Firm: Schoenherr Attorneys at Law
• Author: Ms Ivana Panić and Andrej Zori&#263

Change is a constant, and usually completely natural in the world of legislation. Serbia's recent amendments to the Planning and Construction Act are most definitely no different. These amendments were voted upon and adopted on 26 July 2023 and came into force on 4 August 2023.

They bring forth a series of transformative measures aimed at streamlining land ownership, fostering sustainable development, and promoting green construction practices. Of particular note are the provisions allowing the free-of-charge conversion of the right of use over land into ownership, as well as the focus on implementing environmentally friendly construction practices.

Unlocking land ownership: the free-of-charge conversion

One of the most influential changes to the Planning and Construction Act are the provisions envisaging that the right of use of construction land may be converted into right of ownership at no cost. Likewise, owners of buildings (legally) constructed on state-owned construction land, where long-term lease agreements were concluded for periods longer than 50 years, may be granted the right of ownership over such construction land if the long-term lease has been paid in full for the complete period of the lease. It is to be noted however that with these amendments coming into force, the previously effective Land Rights Conversion Act has been automatically put out of force.

Challenges may emerge in the process of implementing this conversion. Ensuring transparency, preventing misuse, and safeguarding the rights of vulnerable communities will be critical considerations for complete, rightful and intended implementation of the amendments. Clear guidelines and effective oversight mechanisms will be necessary to prevent speculative behaviour and maintain a balanced distribution of land rights.

Green construction implementation: paving the way for a sustainable future

Parallel to the changes in land ownership, the amended Planning and Construction Act places a strong emphasis on implementing green construction.

On this note, in particular, amendments introduce (inter alia) a provision that one of the principles for arrangement and use of land/space is the "improvement and encouragement of electromobility", while electromobility is defined as a special means of ecological transport using of electrical and/or hybrid vehicles.

The amendments also introduce a comprehensive framework for incorporating green practices in construction projects. This includes...