The construction of 46 new homes which had been opposed by Transport Minister Shane Ross will not go ahead after a decision by An Bord Pleanala.
The planning authority agreed with the minister that proposals for a five-story complex on the site of the former Kiely's pub in Mount Merrion, south Dublin would "seriously injure the visual amenity of the area".
It had been proposed that the site - partly owned by Paddy McKillen Jr - would be developed to include retail spaces, parking for 185 cars, a gym, a restaurant and other amenities.
Mr Ross was among 330 people who objected to the development, comprised mostly of two-bed apartments.
In his submission the minister argued that roads at the site are "not fit for current capacity" and that the area's "tranquillity would be completely upended during the construction".
"The size and style of this proposed development is completely out of character with the surrounding area," he wrote.
His views were echoed by several other local representatives, including Fine Gael councillor Barry Saul who told the Herald the decision was a "victory for sustainable planning in the area".
He said Mount Merrion is "a residential area and not a shopping destination".
An Bord Pleanala's ruling said the development "by reason of scale, siting, layout, bulk and height, would not compromise an appropriate designed response and would relate poorly to its receiving environment, seriously detracting from the area in terms of visual amenity".