The property group was granted planning permission in April 2019 for two units on the Murraygate. The affordable homes will be located on the upper floors of the units.

West Ranga has also made a deal with Tesco allowing it to make a return to the Murraygate as part of the £6 million housing and retail development.

The development will also occupy the former Christmas Shop site which had to be demolished after suffering severe fire damage in December 2014.

The Murraygate Tesco site closed in November last year after being open for 20 years, costing 78 people their jobs with the retailer, The Courier reports.

Councillor Lynne Short welcomed the 31 residential units, highlighting their importance in promoting a healthy lifestyle in the city centre and a prosperous night-time economy.

She added: “I’m a great advocate of city centre living. Having affordable living in the city centre is great as almost everything is on your doorstep without the need of a car.”

A spokesman for West Ranga said: “WRPG has agreed terms with Tesco Stores Limited to occupy a 506.10 sq m (5,448 sq ft) retail unit at the company’s Murraygate development in Dundee City Centre.

“The fully consented scheme comprises 612.10 sq m (6,589 sq ft) of retail space and 31 residential units arranged over basement, ground and four upper floors. WRPG currently have a 106.00 sq m (1,141 sq ft) retail unit available and would direct interest parties to letting agents, Tom Forster of Orinson or Garth Davidson of Graham & Sibbald.”

Construction on the development will commence in April.