On May 1, 2024, Resolution No. 235 of the Cabinet of Ministers of the Republic of Azerbaijan approved the "Master Plan for the Development of Kalbajar City until 2040".

The concept of the Master Plan for Kalbajar, a city devastated during the 30-year Armenian occupation, was devised considering the pre-occupation situation, the region's topography, and historical architectural heritage. The plan was crafted by experienced specialists from the Swiss firm "sa partners," renowned for their urban planning projects, in collaboration with the Baku State Design Institute, commissioned by the State Committee for Urban Planning and Architecture.

As per the Master Plan, Kalbajar City will encompass the current urban area and the nearby Boyagli village. The city's primary thoroughfare, extending from the northeast to the southwest, forms the backbone of the planning structure. It encompasses the city's industrial zone at the starting point, the city center in the middle, and tourism and social service facilities at the terminus.

Comparatively, the city's previous Master Plan, drafted in 1969, allocated 130 hectares of land for an approximate population of 7,500. By 2040, the projected area will expand to about 290 hectares, accommodating a population of 17,000. The city center will feature medium-rise multi-apartment and administrative buildings, while surrounding areas will house private residential units.

The total housing stock will comprise 488,000 square meters, predominantly comprising 421,000 square meters of private housing and 46,000 square meters of medium-rise residential buildings. The plan aims to provide 4,250 apartments (25 square meters per person) by 2040.

Additionally, plans include the construction of 4 schools (with 960 student places), 4 kindergartens (with 520 places), 2 hospitals (with 160 beds each), a rehabilitation center (with 150 beds), Invasion and Victory museums, hotels, various dining facilities, and sports grounds.

The Master Plan allocates 22% of the city's area to green spaces, providing approximately 60 hectares of green belts catering to various age and social groups, resulting in a green space per capita of 33 square meters, surpassing the national standard.

Modern road infrastructure, including 27 kilometers of roads and 22 kilometers of bicycle paths, will be constructed to modern standards. Renewable energy sources will power the city, with drinking water supplied from the Agchay water sources.

The service, particularly tourism, and agriculture sectors are expected to drive Kalbajar's economic growth. Its proximity to the reconstructed "Istisu" sanatorium will spur the development of medical tourism, contributing to sustainable employment opportunities for the population.