Belgrade Waterfront Market Construction Proceeds Without Permit, Sparking Legal Questions

A significant controversy is unfolding in Belgrade regarding the construction of a new market within the ambitious Belgrade Waterfront project. Reports indicate that the market's construction is underway, yet it allegedly lacks the necessary building permit and even a formal notification of works commencement. This situation raises serious questions about adherence to legal procedures and regulatory oversight in one of Serbia's most high-profile development zones.

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We will also have that market finished, modeled after these markets in Spain… We are starting in the next few weeks there at Belgrade Waterfront, so we will have that by Expo as well.

According to BIRN, the Ministry of Public Investments, acting as the investor, and Belgrade Waterfront, the project's financier, only sought a building permit on March 17th. This application came after excavation and construction activities had already commenced on the site, a timeline that appears to contradict Serbian construction law. The law clearly states that obtaining a building permit and registering the start of works are mandatory prerequisites before any construction can legally begin. Failure to comply constitutes a criminal offense, carrying potential prison sentences for investors and contractors.

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The problem was that the works started, and are still being carried out – and yet, no building permit has been issued for this location, nor has the start of works been reported, which are documents that must be obtained before construction begins.

Adding to the opacity, neither the Ministry of Public Investments nor the Belgrade Waterfront company responded to BIRN's inquiries regarding the matter. This lack of transparency is particularly concerning given the project's scale and the involvement of state-owned entities. The Ministry of Construction, Transport, and Infrastructure reportedly rejected the permit application due to numerous deficiencies, including requests for permits on non-existent parcels resulting from land re-parcelling. This rejection further complicates the legal standing of the ongoing construction.

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According to the Criminal Code, building without a building permit is a criminal offense punishable by imprisonment from six months to five years for the investor, and from three months to three years for the contractor.

From a Serbian perspective, this incident highlights recurring concerns about the rule of law and the application of regulations, especially in large-scale projects involving significant foreign investment, such as Belgrade Waterfront, which is partly owned by UAE-based Eagle Hills. While the government, through officials like Finance Minister Siniša Mali, promotes such projects as vital for economic growth and modernization, instances like this fuel public skepticism about transparency and equal application of the law. The situation underscores a perceived disconnect between the government's narrative of progress and the reality of regulatory compliance on the ground, prompting calls for greater accountability and stricter enforcement of construction laws.

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The Ministry of Public Investments, as the investor, and the company Belgrade Waterfront, as the financier, applied for a building permit for the market building on March 17 – after the works on the site were already well underway.