Kerry County Council has granted planning permission for 31 houses and 12 apartments in Dingle.
However, the Council has stipulated that the buildings must be primary, permanent year-round residences, not holiday homes or second homes.
The estate is being developed at Goat Street near the roundabout for Slea Head by An Choill Developments Ltd, a Dublin based company.
The development also comes with a 15-year Irish language condition, which says at least 31 percent of the dwellings must be reserved for Irish speakers.
Owners and tenants will be required to take a test to prove their fluency in Irish to the standard required for obtaining a Gaeltacht Housing Scheme grant.
A portion of the dwellings will also be social housing units.