Phase 2 of the development of the former Roebank Shopping Arcade will begin soon.
Hull City Council has transferred ownership of the Bransholme site to developers Azza Construction which will build 24 bungalows.
The bungalows, to be off Bodmin Road, will be owned by Pickering & Ferens Homes, a social landlord which will lease and manage the homes to over 55-year-olds.
This type of accommodation is currently in short supply in Hull and the council is delighted that works can now begin.
Development is expected to take around 18 months to complete.
Hull City Council’s portfolio holder for regeneration, Cllr Paul Drake-Davis, said: “Roebank Shopping Arcade was a run-down facility which attracted unwanted attention and was an eyesore in that part of Bransholme.
“The first part of this development cleared the parade and provided three new retail units which are trading well and it is pleasing that these latest works are now able to get underway.
“There is a shortage of this type of housing in Hull and I look forward to seeing the new bungalows once they are finished.”
The bungalows will be situated next to Phase 1 of the development which saw Azza Construction’s sister company, Nagra Group, construct the new retail units in 2021.
Part of the proposals also includes a new car park for additional spaces for residents of the nearby high-rise flats in Padstow House.
A spokesperson from Azza Construction said: “Azza Construction has completed various developments, both residential and retail, in and around Hull over the last 13 years, including working with the council to regenerate parts of the city.
“The Roebank Shopping Arcade development is similar to a recent project Azza completed on Saltshouse Road in partnership with Pickering & Ferens.
“Azza is owned by the Nagra family and prides itself in employing people and sourcing materials from suppliers in the Hull area.
“We are looking forward to commencing work on sites in the next few weeks.”