Planners gave the scheme the go-ahead after hearing about the a need for properties at universities in the city.
Glasgow Harbour is to build 503 studio-style flats and two shops on a site bordered by Beith Street, Castlebank Street and Anderson Street near Partick Cross.
The development will be 10 storeys at its highest, while the larger of the two shops is likely to be operated as a discount superstore.
Councillors were told the development will be on a site previously earmarked by Tesco for a superstore, 653 student flats and 200 houses.
The move comes after figures showed the number of applications for the three universities and the art school rose from more than 60,000 in 2008 to almost 78,500 last year, while the five main higher education institutions in the city offer accommodation for only 6219 students.
Richard Brown, the council's executive director of development and regeneration, said the proposal would help to address this demand.
Partick Community Council had raised concerns about over-development of student accommodation in the area.
Peel Ports Clydeport property director Euan Jamieson said they were pleased to get the consent, which would lead to the re-use of a long-derelict part of Partick Cross.