Campaigners from the nearby Ministry of Sound club had waged a campaign to block the Newington Causeway residential tower, fearing the influx of new residents would put its licence at risk.
But local planners rejected the objections and voted 4-3 in favour of granting planning permission for the scheme, which has been designed by Panter Hudspith Architects.
The tower, which will to be located to the south of the railway bridge, will include 38 homes with 11 flats designated for shared-ownership affordable housing.
Ward councillor Tim McNally addressed the planning committee in support of the planning application.
He explained that the regeneration of Elephant & Castle had stalled because of the economic downturn.
“It is imperative that it is restarted and is seen to be restarted,” he said, adding that the next phase of regeneration will finally see areas to the north of the Elephant, such as Newington Causeway, obtaining some of the benefits of development.