Four blasts hit the Sayeda Zeinab district, which is home to a Shi'ite shrine. Another 180 people were wounded, the Observatory said.
Video aired on Syrian television news network El Ikhbariya showed the aftermath of the blasts, where children could be seen being carried to safety, some with blood on their faces.
Islamic State has claimed responsibility for the attacks where a Shi'ite shrine is located, according to the Amaq news agency which supports the militant Sunni group.
It said two Islamic State suicide bombers blew themselves up in the Sayeda Zeinab district after detonating a car bomb. Witnesses and a monitoring group reported four bomb blasts.