Both the characteristics of Serbia’s urban land policy, the delay in reforms and land development management of the Belgrade Metropolitan Area (BMA) illustrate the complexities following the reshaping of institutional framework under the conditions of economic and other uncertainties of societal transition. The negative implications of the prolonged crisis on the new urban development policy and urban land tools can postpone the establishment and application of guidelines for limiting the urban sprawl. This paper presents a brief literature review, as well as the current urban land policy and land-use efficiency in the BMA. Traditional urban land tools will be shortly described, followed by recommendations for limiting sprawl. There is a need for readjusting the current planning and urban policy regarding the urban sprawl, from an urban “command-and-control” approach to a “learn-and-adapt” approach. We suggest the introduction of more innovative and flexible urban land policy tools.