Fermanagh House is the headquarters of the charity Fermanagh Trust.
The deputy First Minister, Martin McGuinness MLA and Finance Minister, Arlene Foster MLA cut the first sod on the development.
Minister McGuinness said: "This extension will increase the Fermanagh House floor space by over 70% and include a range of new services and facilities with a dedicated community education resource and space for new and fledgling initiatives and enterprises.
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"This investment enables Fermanagh Trust to continue making a much valued contribution to Fermanagh and drive the economic, social and emotional benefits for the entire community."
Minister Foster said: "The £80million Social Investment Fund is at the heart of the Northern Ireland Executive's Delivering Social Change Framework making life changing differences to people facing hardship, poverty, deprivation and dereliction not just in the Enniskillen area but throughout Northern Ireland."
The extension received £795,000 from the OFMDFM Social Investment Fund (SIF).
