The £3.5m scheme will see 25 new homes built by contractors Compass Building, on behalf of Albyn Housing Society.
The project is expected to be completed by September 2015 and will include 17 two- and three-bedroom homes available for rent, as well as eight two- and three-bedroom homes for sale under the Low Cost Home Ownership scheme (LIFT).
Calum Macaulay, Chief Executive of Albyn Housing Society, said: "At a time of heavily reduced funding for affordable housing developments, we are delighted that construction is now underway for 25 much needed affordable new homes in the Highland capital.
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"We are also very pleased to be using local contractors for the multi-million pound project. At Albyn Housing Society we aim to build strong communities, not just quality homes, and by supporting local jobs the project will bring benefit to the local community, even before we hand keys over to their new tenants and owners later next year."
Donald Mackenzie, Managing Director at Compass Building, added: "We're very pleased to have been appointed as a lead contractor by Albyn Housing Society. This new city development is greatly welcomed as it will bring quality affordable homes to the Inverness community whilst creating valued employment for local tradespeople."
Compass Building will construct the new homes, while local firms Colin Armstrong Associates, HGA Engineers and KLM Partnership will provide design, engineering and consultancy services, Albyn Housing has said.
(JP/CD)
