Unite Group have been granted planning consent for a 1.8 acre site on St. Leonard's Street in central Edinburgh.
The development will provide 579 beds for the City's students and is expected to be completed in the 2017/18 academic year.
The site is located near to the central campus of the University of Edinburgh and is also convenient for students at other Edinburgh institutions including: Napier University, Herriot Watt University and Queen Margaret University.
Richard Simpson, Managing Director of Property for Unite, commented: "We are delighted to have received planning consent for our new development in Edinburgh which forms part of our ongoing regional development plans already progressing well in areas such as Newcastle, Aberdeen and Coventry.
"Edinburgh is a thriving university city and a great home for students, who continue to be important contributors to the local economy."
The scheme will have a total development cost of around £41m and will see a new five storey property housing students in a mix of shared flats with communal living and kitchen areas, and self-contained studios plus a 10,000 sq ft retail unit on the ground floor.
The site is currently occupied by an 8,000 square foot retail unit which will be demolished to make way for the new development.