Urban neighborhoods that work toward carbon-free, climate-neutral goals, attain a positive energy balance, and aspire for excess renewable energy production are defined as Positive Energy Districts (PEDs). PEDs are designed to contribute to sustainable urban growth, and it is also true that sustainable urban growth can lead to the creation of PEDs. Essentially, PEDs can be achieved by developing and following sustainable infrastructure and urban planning practices including spatial, transportation, and social planning. As per JPI Urban Europe, the key aspects of PEDs along with the funding include implementation strategies, stakeholders, climate transition, governance, legal frameworks, as well as technological and system innovation. As the name suggests, PED mainly comprises positive energy (energy management) and district (neighborhood) elements. The district aspect encompasses urban planning that constitutes strategic planning for sustainability implications consisting of environmental, social, economical, mobility, and transportation-related factors, all of which involve the users and its people. The positive energy aspect of a PED enables local energy production resulting in energy efficiency and potential cost savings for its residents. The thesis examines the performance of urban planning factors with the potential to develop an existing neighborhood toward a PED. This research study explores the overall sustainability of a neighborhood in terms of mobility, social, economic, and environmental factors. The performance of these factors is measured through Key Performance Indicators (KPIs), which measure the attributes of sustainability. These contributing KPIs have been studied on a scale through a case study of Hammarby Sjöstad (HS) in Stockholm. The perception of stakeholders is collected for evaluating KPIs. These KPIs have been thoroughly analyzed as designed during the planning stage and post-implementation to evaluate their success. The findings of this thesis can be employed as guidelines for setting benchmarks and goals for the development of PEDs in cities throughout the world.