The Land Development Agency has announced 345 new apartments at Crown Square in Mervue.
The majority of the apartments - 310 will be made available as Cost Rental, with the remaining 35 allocated for social housing.
The first homes will be ready by the end of next year.
The new apartments are being built across four blocks by JJ Rhatigan & Company at Crown Square on the Mervue Road.
The A-rated apartments comprise 86 one-beds, 240 two-beds and 19 three-beds.
310 will be made available as Cost Rental, with the remaining 35 allocated for social housing.
Cost rental is a new tenure that provides a secure and long-term rental option at below market rates.
It's designed to assist those who don't qualify for other state housing supports, but who are struggling to afford to rent in the private market.
The apartment development is located on a 12.65-acre campus which includes the new Radisson Red Hotel.
It will also include the new headquarters for Galway City Council, a group of offices, a food hall, medical centre, commercial gym, creche facilities and a pharmacy as well as a running track and green recreational areas.
In addition to Mervue, the Local Development Agency is working with Galway City Council on the proposed development of 200 homes at Dyke Road.
They're also working on a longer-term plan to transform land surrounding Sandy Road into a new urban quarter with the potential for 750 affordable and social homes.
The Agency is also advancing plans for 250 apartments at Galway Docks.
