The development of 369 houses will be built at the former Summerhill Academy site.
The Summerhill scheme will be a mix of one-, two- and three- bedroomed homes. The council’s combined heat and power scheme – which uses waste heat from electricity generation – will help keep fuel bills down.
All properties will be fitted with ‘full fibre to the premises’ optical cables and a separate duct to increase digital connectivity options.
Councillor Jenny Laing, co-leader of the council, said: “At Summerhill we want to get the very best outcomes for new residents and the wider area. The construction contract has a comprehensive programme of community benefits, including apprenticeships and early learning activities.
“It is also proposed that we set up a residents’ association and encourage tenants to participate in the future management and maintenance of the development.”
Fellow co-leader Douglas Lumsden said: “The entire city is benefiting from our ambitious council house programme, which is gathering real momentum. Access to housing greatly improves the quality of life for residents by creating new communities and opening up new social and economic horizons.
“Our programme also supports employment and training opportunities and gives us a chance to attract and retain key workers – nurses, teachers, craft workers – making it a win-win-win for the city.”