An Bord Pleanala has cleared the way for a 257 bed student complex near Terryland.
The plans were approved by city planners in May - but local residents groups took an appeal to An Bord Pleanala.
Plans for the development at Coolough Road, Terryland were first approved in 2020.
The original plans for the site backing onto parts of Crestwood and Tirellan Heights were for 248 student beds across two blocks, up to four stories in height.
That was later revised to 257 beds by developer Montane Developments - and that prompted a flood of local objections.
The claim the development is excessive in height and scale, will impact on traffic, could potentially be used as summer accommodation for tourists, and offers insufficient parking.
But city planners approved the project, and several local residents associations then lodged an appeal with An Bord Pleanala.
The higher planning authority has now approved the project, clearing the way for construction to get underway in the near future