The project, led by the Land Development Agency (LDA), has been beset by legal difficulties, and held up as an example of the complications in the planning system that prevent the construction of enough housing for the country’s growing population.

The LDA, and Dun Laoghaire/Rathdown County Council, with which it is now partnering on the development, have welcomed a decision by the planning appeals board to grant permission for 934 homes on the site. This could still be challenged in the courts, however.

The agency is promising to build 753 affordable homes for sale and cost rental, and a further 181 social houses, on the site.

The LDA says it will also put in the required services and facilities, including a community centre with a multi-purpose sports facility, a medical centre, shops, a creche, a café and a public plaza.

The LDA originally got permission from the planning board in May 2023 for 852 housing units on one of the biggest sites in the State’s property portfolio. A legal challenge was taken by a local developer, on the basis that the proposal was in conflict with the local council development plan. The agency is still defending this case in the courts.

John Coleman, the chief executive of the LDA, has told an Oireachtas committee that the court challenge delayed the plans by two years, and added “at least €30m” to the €400m project cost.

This was the equivalent of putting at least €30,000 onto the cost of each home.

Today, Mr Coleman said the permission granted by An Coimisiun Pleanala marked an important milestone for a long-awaited project, which is needed to deliver affordable housing in an area with a lot of unmet need.

“Having engaged with the community since project inception, we understand how necessary this project is,” he said.

“We are eager to progress the project and deliver on our commitments to current and future residents through our partnership with Dún Laoghaire-Rathdown County Council.”

The LDA says that it has responded to concerns raised during the initial consultation phase, and reduced apartment building heights, which now range from two to eight storeys.

Frank Curran, the chief executive of Dun Laoghaire/Rathdown council, said the project – known as Dundrum Central – would provide an excellent mix of high-quality homes and community facilities in the heart of south Dublin.

“We are delighted to receive permission for this landmark development, which will transform a currently underutilised campus into a thriving new community,” he said.

The Government is planning to clamp down on the number of judicial reviews that are being taken, blaming them for holding up housing and infrastructural projects. It is proposing that a test would be applied to check how likely a review is to succeed before it can proceed, and that only parties directly affected by a proposal will be allowed to launch a legal challenge.

It is also looking at putting a cap on the legal costs that can be claimed even when a judicial review succeeds.