State Industries Minister P K Kunhalikutty inaugurated the construction work at a function arranged at the site, taken on lease from Small Industries Development Corporation (SIDCO) by the National Games organising committee.
The construction of 365 houses measuring 680 sq ft with three rooms having bathroom facility and sit-out, would be completed by the end of January next year, an official release said here.
The facility, being constructed using eco-friendly prefab technology, is coming up near the Greenfield stadium at Karyavattom, the main venue of the most important sporting event in the country.
The village, to be constructed at a cost of Rs 60 crore, could accommodate 5,000 persons at a time.
The construction of first 25 houses in the village would be completed by November 25 and the entire village would be ready by the end of January next, the release said.
Kerala is going to host the National Games for a second time after 1987.