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Up to 4,800 properties are earmarked to be built, with the majority in the west of the city to take advantage of the new tram network.
City leaders expect the sites to be in huge demand from developers keen to build family homes and capitalise on the new transport route.
The move is likely to be controversial, as previous attempts to build on the green-belt have attracted protests from residents and environment groups.
However, Edinburgh City Council said failure to address housing shortages would lead to rising prices and force low-income families out of the city.
Planning leader Ian Perry said: “If we don’t allow these developments, house prices will rise and you will need a very high income to live in Edinburgh.
“Families could also be forced out of the city, as it would be too expensive to live here.”
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