Nearly 1000 new homes planned for Dundrum

Dundrum is doing its bit to make a dent in the housing crisis.

An Coimisiún Pleanála has granted approval for a major residential development on the site of the former Central Mental Hospital in Dundrum.

Permission has been granted for 934 new homes in the area.

Local Fianna Fáil TD Shay Brennan has welcomed the news, saying, “this is an extremely positive development for the area, ensuring hundreds of families can access secure, high-quality homes.”

“Increasing housing supply is central to tackling the housing crisis, and developments like this create real opportunities for people to own or rent a home in their own community,” the Dublin Rathdown TD said.

Brennan said the LDA’s approval “adds to the growing momentum we are seeing nationally” with regard to the housing crisis.

He conceded that while the local housing boom is welcome, the government needs to do more to combat the housing crisis.

“While significant progress has been made in 2025 through major legislative reform to improve how infrastructure and housing are delivered, however, we remain very aware that much more has to be done,” he added.

“Increasing supply remains the most effective way to address rising costs, and every measure will be examined in order to achieve that.”

Minister for Housing James Browne, who came in for criticism in 2025 for making decisions on behalf of Dublin City Council housing projects without their input, said, “I am backing ambition here – these homes are essential in responding to our housing crisis.”

Local Fianna Fáil councillor Fiona Murray welcomed the news, saying “people consistently tell me they want affordable homes close to where they grew up and where their family and friends are.”

“That is why this project is so encouraging for Dundrum. We need to make the best possible use of available land in well-served areas. By developing previously underutilised land into a vibrant mixed-use development, this project will help create a more connected community while supporting sustainable urban growth.”

Green councillor Robert Jones welcomed the news, saying “the project also delivers important community and sustainability benefits” noting that the planning permission also calls for the construction of a community centre with indoor sports facilities, a medical centre, retail units, a café, a crèche and a new public plaza.

The Dundrum councillor said, “Dundrum Central shows what good public-led development looks like: making smart use of underutilised land, delivering homes at scale, and building a compact, walkable community with services close to where people live.”

“This is the kind of housing delivery we need more of, affordable, sustainable and community-focused,” he said.

Jones noted that the process is still subject to the statutory eight-week period for any legal challenges, which has become a feature of the Irish planning system.

If there are no objections, it is expected that the process will go to tender in early 2026.

In early 2024, a previous proposal to build 852 homes on the site was nixed after an objection, which forced a redesign of plans.

As reported by Southside People in June 2023, the initial plan called for 125 more homes than originally planned.

The hospital itself was built in 1852, with the HSE ceasing operations at the site in early 2023, with patients were relocated to a new €200 million campus in Portrane.

Since the site stopped being used by the HSE, the state briefly used it as an accommodation hub for asylum seekers and refugees.

The development will comprise a mix of housing options including apartments, duplexes and houses to cater for all needs, whether it be a single person, a family, older residents, first time buyers or renters.

John Coleman, Chief Executive of the Land Development Agency, said “this is an important milestone for a long-awaited project, which is vital to delivering much-needed affordable housing in an area with a significant unmet need.

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

Coleman previously said that the site “balances the desire to create a significant housing development, delivering much-needed affordable homes for people of all ages, while also integrating successfully with the neighbouring community.”

“The Dundrum Central site will not only deliver housing, but just as importantly will provide a place for people to enjoy their surroundings, with public spaces, community infrastructure and opportunities for enterprise development.”

Frank Curran, Chief Executive of Dún Laoghaire-Rathdown County Council, said “Dundrum Central will 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.

“Building on the success of Shanganagh Castle Estate in Shankill, we are confident that our partnership with the LDA will deliver a sustainable urban community in a sought-after location,” he said.