The proposal for Walford, on Shrewsbury Road in Dublin, had sought permission to extend the existing property to almost double its size and add four additional houses in the back garden.
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Refusing the planning application, An Bord Pleanála, said that the redevelopment would be "out of character" for the area and set an "undesirable precedent in this sensitive setting".
Walford earned the title of "Ireland's most expensive house" when it was bought in 2005 for €58, by Gayle Killilea, wife of developer Sean Dunne.
The house was later sold to a Cypriot registered company for €14m.
(MH/IT)
