Minister for Justice, Jim O'Callaghan has said Cabinet has approved plans to proceed with the purchase of the Citywest Hotel and campus in Dublin for €148.2m.
The State has been leasing the property since 2020 when it was used as a Covid vaccination site.
Since 2022, it was used to house those in need of temporary protection and more recently for international protection applicants.
Speaking at Government Buildings, Minister O'Callaghan said: "It really does represent value for money in terms of the amount of money we're spending on the private commercial sector as opposed to the savings that can be achieved if we own our own accommodation."
Minister O'Callaghan said €148.2 million purchase price would result in significant savings over time.
"It's going to be far cheaper in the long-term in terms of owning it as opposed to the cost we're paying at present per person in the accommodation."
In a statement, the Department of Justice said the purchase of the facility was part of a "long-term strategy to developing a sustainable accommodation system", and that the "site will deliver significant long-term savings to the State as its moves from licencing to ownership".
The Department also said securing the site in State ownership would "enable Ireland to meet requirements under the new EU Pact on Migration and Asylum".
Protest by residents
Asked about protests outside Leinister House last week by residents opposing the purchase, Minister of State Colm Brophy said "we are not changing over all what is happening in Citywest at the moment in terms of numbers and Citywest has actually been working very effectively in terms of having an IPAS centre there and Ukrainians also".
He said the campus has offered a range of services effectively for several years.
Minister Brophy said that by owning Citywest "we can save effectively 50% of the operating costs".
Minister O'Callaghan said, in terms of the programme for Government, the plan is to own 14,000 accommodation units for those seeking international protection.
