The project will see 60 new, affordable homes delivered to the area.
The £6m Greendykes C project is part of the Council's wider 21st Century Homes for Edinburgh programme, which aims to build up to 1,400 homes available to rent or buy in the city.
To date, the programme has delivered more than 100 homes to the Gracemount area.
Constructed by Hart Builders, the scheme will include a mix of modern houses and flats designed to be fuel efficient and affordable to heat, with 46 properties being marketed for rent and 14 being allocated for social housing.
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Housing Leader, Councillor Cammy Day said: "This is a fantastic project, forming an important part of Craigmillar’s regeneration. It is vital that we tackle Edinburgh’s shortage of affordable homes and projects like this are an important step in this direction.
"We are committed to working with our partner organisations to deliver more developments like Greendykes, which not only provide much-needed homes but also create jobs and boost the local economy."
Greendykes C follows a number of regeneration projects that are changing the face of Craigmillar as part of the Urban Development Framework.
The demolition of older buildings and construction of 593 new homes over the last eight years in the centre of Craigmillar, Niddrie Burn and Greendykes North all contribute to the pace of change. The Council has also said it will invest £4m in refurbishing existing properties in the neighbourhood, while two further developments, providing 76 new homes on Niddrie House Park and Collier Place, are under construction and due for completion by September 2013.
(JP/CD)
