Housebuilder Barratt is to begin work on more than 1,000 homes near the Olympic site in East London before the games begin in 2012.
A total of eight major phases will be underway at St Andrews in Bromley-by-Bow and Dalston Square in Hackney by the time the Olympics kicks off.
This ties in with rising prices in the East London area, after Lloyds TSB research revealed that the average property has appreciated by 32 per cent in Bow and 39 per cent in Dalston since the Olympics was awarded to London in 2012.
"There is strong demand for property in East London and flats in both St. Andrews and Dalston Square are excellent value for money, especially considering how convenient they are for Canary Wharf and The City," said Barratt London's regional sales director Gary Patrick.
The announcement follows shortly after former swimming champion Mark Foster laid the first tiles in one of the two 50m swimming pools at the Olympic Aquatics Centre.
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