The publicly listed developer has received planning consent to progress with the development of land currently being used as a car park on Hunter Street in Chester.
The development will consist of 77 beds and has an estimated end value of £6.5m. Completion is due in 2018.
Watkin Jones, based in Bangor, is already developing 330 student beds in Chester for delivery during the summer of 2017.
Mark Watkin Jones, chief executive of Watkin Jones, said: “This development when completed, will service students at the University of Chester and the University of Law and we are pleased to have added the Hunter Street site to our already impressive portfolio in Chester. The look and appearance of the development will be modern however we will ensure the selected materials will be reflective of the overall character and appearance of the area. The demand for student accommodation is growing and this latest scheme adds further validation to our business model.”