WORK will begin this week on a £17 million hall of residence which could bring an extra 441 students to Newport.
Newport Unlimited said the increase in student population will bring a "real buzz" to the city centre and create a "vital boost to the local economy".
The site, situated in Usk Way at Old Town Dock, got the green light for the seven-story development from the council in February.
The halls are due to open in September 2008.
The development will be on the bank of the River Usk, adjacent to the new £40 million city centre campus of the University of Wales, Newport.
The work will be the first project in South Wales by developers Opal, who specialise in student accomodation.
John Burrows, chief executive of Newport Unlimited, a partnership between Newport City Council and the Welsh Assembly Government, praised the plans.
The development will consist of five-bedroom flats - each with an open-plan kitchen and broadband internet connection - a laundrette and common room.
The city centre campus will be home to the Newport School of Art, Media and Design, and Newport Business School.
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