They are the first homes in the area to be constructed under the National Housing Trust (NHT) initiative.
Under the NHT scheme, developers and local authorities jointly fund the purchase of newly-built homes, then make them available for rent at below market rates.
The development at Sandy Loan, which consists of 15 two-bedroom flats, will provide homes at affordable rents for people in lower paid employment, the local authority has said.
-- Advertisement --
When the properties are completed, they will be made available to let by Northern Housing, which is part of the Hillcrest Group.
Work on the development is expected to be completed by the end of 2014.
Welcoming the progress made on the project, John Alexander, convener of Dundee City Council's housing committee said: "I am extremely proud that we have been working closely with the Scottish Futures Trust and the developer to make this development a reality.
"For the first time in many years we are providing high quality modern, energy efficient rented housing in Broughty Ferry which will benefit the local community."
(JP/IT)
