The development on West Pilton Crescent will provide the first new Council houses in the area for a generation and is part of the local authority's 21st Century Homes initiative.
The project will create 1,400 affordable homes for rent and sale throughout Edinburgh, with the south of the city already benefiting from 87 new Council homes and 12 shared equity properties.
A further 715 new homes will be built in Pennywell to follow in efforts to regenerate the north of the capital and to help meet the demand for social and mid-market rent properties.
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The new West Pilton Cresent development includes 31 flats and three houses. Each of the properties will be available for social rent.
The council added that plans are also in place to improve the grounds of the neighbouring Northview Court. This will benefit from an improved residents' garden as well as a renovated play area with new equipment making it suitable for both young and older children.
Councillor Day said: "This is an exciting project for Pilton and will really enhance the local landscape as well as providing more Council homes, which the city so desperately needs.
"We are committed to investing in homes for social rent, whether this involves upgrading existing ones or building new, modern and energy efficient properties like these.
"The mix of flats and houses that are being created on West Pilton Crescent will make them accessible to families and individuals, which will help us to meet the ever increasing demand for Council homes in the area."
The 34 initial properties are expected to be completed by October 2014.
(JP/MH)
