The City of Edinburgh Council has approved a planning application for an additional 177 houses and apartments in Pennywell, northwest Edinburgh.
The second phase of Urban Union's Pennywell Living development is within a scheme which will deliver approximately 719 homes in the area.
Graeme Nicol, managing director of Urban Union, said: "The granting of planning permission for the second stage of works marks another milestone in our partnership with 21st Century Homes and our plans to provide much needed homes in the Pennywell area.
"We will now begin to build a further 177 homes, which have been carefully designed with young couples, families and downsizers in mind. With the highest quality fittings and finishes, we expect interest in these homes to be high."
This phase comprises a range of two and three-storey terraced, semi-detached town houses with modern exteriors and three new blocks of apartments, all centred around a village green space.
Councillor Cammy Day, Housing Convener for the City of Edinburgh Council, said: "The Council is investing heavily in order to meet the high demand for homes in Edinburgh and to create sustainable neighbourhoods, such as Pennywell, by working with local communities and partners such as Urban Union."
Work should begin on site in late 2015, with the first homes anticipated to be released for sale in early 2016.