The Nido Spitalfields scheme near Liverpool Street Station is due for completion in September by main contractor ISG.
Demand for rooms is strong despite the high prices as the student accommodation market continues to grow fuelled by an influx of overseas students and more domestic school-leavers entering higher education.
The Spitalfields scheme is the latest project from specialist operator Nido Student Living which is backed by investment body the Blackstone Group.
Single occupancy studio rooms in the 31-storey tower cost £330 a week while shared rooms start at £240 a week.
The tower will hold 1,204 students attending colleges across the capital and Home Counties.
Maureen McDermott, Director of Student Accommodation, said, “Nido Student Living addresses the need for better quality living and, in particular, studio living in one of the world’s leading cities for both UK and international students.
“With foreign students bringing in approximately £4 billion a year into the economy, there is a staggering lack of quality student accommodation to support them.
“British universities provide accommodation for less than a quarter of potential demand.”
The student accommodation sector has been identified by a growing number of contractors as an expanding market.
Clive Williamson, managing director at Ocon Construction, said: “The market for student accommodation is one of the few construction sectors that has remained buoyant during the recession.
“The creation of the new universities has generated demand and there is a well-defined rental income stream for developers – student accommodation is not a speculative market like hotel development.
“In around 60% of cases, the developer has a formal agreement with the university and this commitment provides a high degree of certainty for the funding body so student accommodation is one sector which the banks are still happy to provide funding for.”