Cardiff City Council has appointed Wates Living Space to deliver its target of building 1,500 new homes over the next ten years.
The target, part of the Housing Partnership Programme (HPP),will include the building of up to 600 council houses.
The council will invest £33m in the project.
The HPP includes over 40 sites across Cardiff split into three phases of development. The first phase is due to begin early in 2016.
Each phase will be capable of delivering around 500 homes at a time, with all three stages completed by 2025.
All the properties are to be built with high levels of sustainability and energy efficiency, with a 'Passivhaus' pilot project being delivered in the first phase of the development.
Cllr Susan Elsmore said: "I'm delighted we have reached this important milestone in the Housing Partnership Programme in which the Council will be investing up to £33m.
"With over 10,000 people on the housing waiting list this is an extremely important scheme that will play a key role in tackling Cardiff's housing need."
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