934 new homes approved for former Central Mental Hospital site in Dundrum

An Coimisiún Pleanála has granted approval for a major residential development on the site of the former Central Mental Hospital in Dundrum. The project is being delivered in partnership between the Land Development Agency (LDA) and Dún Laoghaire Rathdown County Council.

Permission has been granted for 934 new homes along with a range of supporting amenities. Subject to the statutory eight-week period for potential challenges, the development is expected to proceed to tender for the first phase.

Once completed, the scheme will deliver 753 affordable and cost rental homes and 181 social homes. The development will also include a community centre with indoor sports facilities, a medical centre, retail units, a café, a crèche and a new public plaza, providing significant benefits for the wider Dundrum area.

Welcoming the approval, Fianna Fáil TD for Dublin Rathdown Shay Brennan said:

“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.

“In the first year of this government, a range of measures have been introduced to reduce delays and support increased delivery. This approval for a large scale LDA project in Dundrum adds to the growing momentum we are seeing nationally.

“Latest figures show a 48% increase in new build social homes in the first nine months of 2025 compared to the same period last year, with almost 26,000 social homes now in design or under construction.”

Fianna Fáil Councillor for Dundrum Fiona Murray also welcomed the decision.

“People consistently tell me they want affordable homes close to where they grew up and where their family and friends are,” she said.

“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.”

Deputy Brennan concluded by acknowledging progress while stressing the need to maintain focus on delivery.

“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.

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

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