Work has started on the scheme to construct 51 new homes on the Clagh Vane site in Ballasalla.
Contractors are making progress on the initial phase of construction, including the installation of drainage on the route into the estate.
The £8.24 million investment, supported by Tynwald Members at the July sitting, will deliver a range of terraced and semi-detached properties, in addition to improved roads, vehicle access and car parking, updated utilities and services and a new landscaped open space.
The first homes will be handed over in 2018, with the construction programme scheduled for completion in September 2019.
The development includes a mix of two, three and four-bed public sector properties, eight energy efficient homes, two bespoke units for disabled tenants and scope for up to seven first-time buyer houses, subject to demand.
Infrastructure Minister Ray Harmer MHK said: ‘It is encouraging to see progress being achieved so soon after the Tynwald vote. This work represents the final stages in the redevelopment of Clagh Vane and the creation of a good-quality, modern estate.’
Julie Edge MHK, Department Member with responsibility for Public Estates and Housing, added: ‘The development has been planned to reflect local housing demand and with an eye to the future, with adaptable designs that will help people remain in their homes for longer.’