The University of Waikato is providing nearly 100 more beds for students at the new Tauranga campus.

The three-story multimillion-dollar development in Selwyn St aims to fill some of the accommodation shortfall in the area.

It is being purpose built by QP Properties Holding Limited.

Senior Vice-Chancellor Professor Alister Jones said the new educational precinct was a critical part of delivering a successful city.

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"The new accommodation block will help strengthen the culture and life of the university, and having a community within the CBD also helps create a more vibrant city."

Jones said the new campus development had seen the number of students in Tauranga grow by over 30 per cent this year.

"We anticipate that interest will continue to strengthen as word spreads about the learning opportunities now opening up to the people and communities of the Bay of Plenty and more widely."

Strong urban design principles have been incorporated into the building, as well as district plan objectives and rules. Each of the 93 student living units includes independent bedroom and bathroom facilities with the kitchen, dining, lounge, games room and laundry being shared.

There will be parking available in the basement.

The Tauranga City Council gave permission for the new building late last year, with construction due to start soon, and students due to use the facility from 2021.