Disused land in Maryhill will be transformed with a play area for children, seating and a community garden with potting sheds for local people to grow fruit and vegetables.
The money was awarded by Big Lottery Fund Scotland to Maryhill Residents' Association, which was set up just two years ago to improve amenities for local people.
Community leaders said they were "thrilled" their ambitious funding bid had been successful.
At present, the only facility local people have is Ledgowan Hall, located close to the flats.
Work will get under way shortly and take up to two years to complete, although much of the transformation will be finished by the end of the year.
The group which made the successful bid is the Mini- Multis Residents' Association, so called because 12 of the 15 blocks of flats close to Shiskine Drive are just seven storeys tall and known locally by that name.
The three others are 20- storey blocks in the neighbouring Glenavon estate.
Maryhill Housing Association has helped set up a number of new residents' associations in recent years.
It also gave an undertaking to local people that it would improve the area after it took over local housing from Glasgow Housing Association in a stock transfer when tenants voted in a successful community-wide ballot in June 2011.
Alistair Goold, chairman of the Mini-Multis Residents' Association, said: "Winning this money from the Big Lottery means we can make a substantial and lasting difference to our community.
"We are so pleased to be able to make progress on creating our new community space."
A spokesman for Maryhill Housing Association added: "Like the Evening Times, which has run a very successful Streets Ahead campaign, MHA applauds any activity in which residents work to improve their own community."