New Wood Wharf is a 20-acre semi-derelict site that was previously used for shipping and storage of timber and is about a third of the size of the main skyscraper district to the west.
The new masterplan, which includes a 57-storey luxury tower as well as affordable homes and two parks, will mark the first major residential development for the business-focused area.
The scheme will also offer 2.57m square feet of new offices, which Canary Wharf hopes will attract more creative media and technology companies to reduce its reliance on the financial sector, which has reduced its requirements for new office space since the crisis.
Sir George Iacobescu said the move towards residential was a “reflection of the demand” in the market.
“[It] is an opportunity for us to further expand the appeal of Canary Wharf by creating a new and exciting mixed use neighbourhood at Wood Wharf which will offer greater diversity and amenity and a richer urban fabric for the fast emerging City Centre of Canary Wharf,” he said.
Construction is expected to start in the first quarter of 2014, with the first buildings completed in 2017.