The €500m development of a centralised DIT campus in Grangegorman has been approved by An Bord Pleanála.
But the board ruled that three proposed buildings of between 12 and 15 storeys high will have to get separate planning permissions because of their potential impact on the city skyline.
The Grangegorman Development Agency says it plans to proceed with the development through its own private funding despite cutbacks to government financial backing.
It plans to have 7,000 students - about one third of DIT's total - on the site by 2017.DIT
The plan to move the 39 different DIT colleges situated around Dublin into one campus has been in the pipeline for nearly ten years.
The plan involves development on part of 75 acres of grounds at St Brendan's psychiatric hospital.
It will involve the third-level facility, healthcare facilities and a primary school and include three buildings between 12 and 15 storeys high.
Local residents objected to the height and density of the development and say that the plans are too vague.
In its approval the board made a number of conditions designed to improve access, ensure the renovation of protected buildings on the site and lessen the impact on local residents.