Investors whg has handed over of the first 12 homes at the former Royal Hospital site from Cannock-based developer Jessup.
The two-bed homes, which will be available for affordable rent, sit on land to the rear of the Grade II listed hospital building.
They are the first of 192 homes to be built on the site for the leading Midlands landlord.
They includes 123 homes for affordable rent and 31 for shared ownership.
The main hospital building, which closed in 1997, will become a wellbeing scheme for over-55s made up of 38 one and two-bedroom apartments.
Rebecca Bennett Casserly, Walsall-based whg’s corporate director of development, said: “Another significant milestone has been reached in the regeneration of this part of the city with the first handovers at the former Royal Hospital site. This is a truly proud moment following much hard work and ambition with support from Homes England.
“We very much look forward to handing over the keys to these high quality, energy efficient homes to our customers."
Chris Timmins, managing director at Jessup, said: “We’re very pleased to be working alongside whg on this unique and rewarding project to provide high quality new homes for local people.
“This new development will complement the new homes we have already built in partnership with whg at the former bus depot site at Cleveland Road in front of the former hospital, creating a thriving new neighbourhood in the heart of the city.
Councillor Stephen Simkins, City of Wolverhampton Council’s deputy leader and cabinet member for city economy, said: “The former Royal Hospital is a hugely iconic building in Wolverhampton and has played a huge part in the lives of so many of its citizens.
“That is why our planning department has worked hard with partners over the years to ensure a suitable scheme is brought forward on this strategically important site.
“whg and Jessup have already worked together to deliver a fantastic scheme on the former bus depot site opposite the former Royal Hospital.
“They are now transforming the former Royal Hospital itself and the area around it by delivering new, well designed affordable housing – in line with our city housing strategy to help local people get homes.
“It will make the former Royal Hospital site a key gateway to the city centre – whilst creating jobs in construction and the supply chain, driving further investment and giving our residents and businesses opportunities to thrive.”