The 21 houses, built by H&H Properties in Kirkton, were bought by the council and will be allocated for rent to their new tenants in phases up to spring 2024.
Mark Flynn convener of Dundee City Council's neighbourhood regeneration, housing and estate management committee said: "We recognise that the demand for good-quality rented accommodation in the city remains high and this agreement with H&H is an innovative way of continuing to meet that demand.
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"The recently agreed Strategic Housing Investment Plan identified how far we have come towards meeting our commitment to making more affordable new-build housing available for rent, and this announcement demonstrates that on the ground with bricks and mortar."
A mixture of two-storey, three-bedroom, detached and two-storey, three-bedroom, semi-detached homes have been built by H&H Properties on the site between Kirkton Road and Kirkton Place.
H&H Properties (UK) Ltd Manging Director Hassan Al-Saffar said: "We are delighted, not for the first time, to act in partnership with Dundee City Council to provide high quality homes in the local area for social rent.
"We realise the importance of providing for a sector crying out for such properties."
