Work has begun on creating 31 flats above a Tesco Express shop in Dundee city centre.
The Murraygate store opened in December 2022 as part of a development on the site of a former Christmas shop, which was destroyed in a fire in 2014.
Now the upper floors are being converted into flats by Hillcrest.
The one-bedroom properties will be offered for social rent.
Hillcrest hopes the flats will be completed by summer 2024.
They are part of a £6 million retail and housing development from West Ranga Property Group.
Hillcrest chief executive Angela Linton said: “This boost of another 31 good-quality homes, right in Dundee city centre, will be a very welcome addition to the city’s provision of social housing stock.
“In addition, with the cost of living crisis impacting many households, these properties will be developed with a range of measures intended to keep tenant bills as low as possible.”
The apartments will feature a range of energy efficiency measures such as secondary glazing and high-performance insulation.
Internal bike storage will also be included in the block, which has been designed to fit into the area’s period style.
David Maxwell, managing director of contractor George Martin Builders, says it is a “delight” to be regenerating the site.
He said: “Whether its specialist developments like this project, or traditional housing, our aim is to deliver comfortable properties, and we’re delighted to be working with Hillcrest to deliver city centre properties that tenants can make a home.”
Hillcrest is currently involved with nine developments across Tayside and Fife including at Dundee’s City Quay and Alyth in Perthshire.
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