The Government is planning to buy property for three of its embassies abroad in a €20 million initiative next year.
However, the Department of Foreign Affairs has declined to say which capitals it plans to make acquisitions in, for fear that speculators might move in and push the prices up. One prospective purchase is in mainland Europe and another is in Asia, it is understood.
Minister for Foreign Affairs Dermot Ahern was given the funding in the Government estimates in November.
It follows the release of €14 million this year that was spent on a land and buildings programme abroad. This money was used to purchase the Irish embassy in The Hague and residences in Ljubljana, in Slovenia; and Ankara, in Turkey.
It was also spent on the refurbishment of foreign missions in Paris, Buenos Aires, the Vatican, Lisbon, Madrid, Prague and Washington.
Mr Ahern said it made sense to buy property to house embassies. "The public understands that if possible you are better off buying rather than continually renting," he said.
"For many years, because of the economic circumstances, we did not have the money to purchase embassies or residences. In better times, the Minister for Finance, Brian Cowen, has been able to provide money which has allowed us to commence this purchase programme."
The Government has 75 embassies and chanceries around the world. The majority are based in rented properties. There are 12 consulates, including four in the United States, located in Boston, Chicago, New York and San Francisco. There are also consulates in Edinburgh and Cardiff.