The scheme, which is being delivered in partnership with Choice Housing, has already seen around 90 homes built at the Clooney Road site.
Choice Housing’s Jon Anderson said planning approval “means that housing stress will be lifted from many families in the area in the coming years.”
It will be completed over the next 10 years and represents a £100m investment, developers said.
During Wednesday’s meeting councillors were told upgrade work would be carried out at both the nearby Caw and Gransha roundabouts.
Work could begin at the Gransha roundabout “imminently”, the developer told the planning committee, with discussions ongoing with the Department of Infrastructure (DfI) about when the Caw upgrade could begin.
No more than 48 dwellings will be occupied before the Caw roundabout has been upgraded, the developers assured councillors.
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