The new homes, which will be complete by 2020, will be spread across a series of 14 blocks. Residents will have access to amenity areas and a large public green space will be at the heart of the development.
Included in the design is a mix of flats and houses. There will be 108 homes for affordable rent and 86 for market rent.
The development is the latest of the Council's housebuilding projects to go on site, having recently completed new homes at West Pilon Grove and new affordable housing nearing completion at Clermiston and Fernieflat Neuk. The £24.6m investment at Craigmillar town centre is funded by the Council with £3.2m in grant funding from the Scottish Government.
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Housing and Economy Convener, Cllr Kate Campbell, said: "It's so exciting to see work starting on these new homes and it won't be long until people are able to move into them. With so many people in need of a home in the city it's good to see progress being made and the regeneration of Craigmillar with good quality affordable housing.
"We've pledged to build 20,000 new affordable homes along with our housing association partners in the next ten years and this is a very welcome contribution towards that goal."
CCG Director Calum Murray said: "CCG was directly appointed by the City of Edinburgh Council through the SPA NH1 Framework and from the outset, Craigmillar 12-15 has been built upon an ethos of project partnering and collaboration. By working together, the masterplan has evolved into one that works sustainably, both economically and environmentally, as well as being a project that has been delivered much faster than by traditional methods, with an overall pre-construction saving of 20 months."
(CD/CM)
