Investing in the World's Oldest City

They do not call Damascus the oldest capital in the world for nothing it is widely regarded as such because it has been inhabited for between 10,000 to 12,000 years. It holds immense historical, cultural, and strategic significance, and, with the end of the civil war lies an important question, will Gulf Arab and especially Turkish investors help rebuild Damascus?

The question itself is overdue, while security concerns are valid and in fact sectarian violence has marred the reputation of the new government, it has been several months since Assad was deposed, and with some sanctions potentially being lifted, business and life go on. But the answer to our question depends on several factors, including the current political, economic, and security situation in Syria.

Above image: The 8th-century Umayyad Caliphate-constructed Great Mosque, a symbol of Damascus enduring many conquerors through the centuries, where Turkish President Recep Tayyip Erdoğan had vowed to pray after Bashir al Assad's ouster, built on the site of an Assyrian church. Photo by UNESCO World Heritage Convention website.

Here are some key considerations:

The economic conditions in Syria, after a decade of civil war, are horrendous for obvious reasons. Inflation in Syria is possibly the highest in the world, the currency devaluation has been hard for many people, and there was limited to no foreign investment in Syria during the 15 years of civil war from 2011 to 2024. One dollar is worth over 9,800 Syrian pounds, inflation has reached 210%. Which makes property prices in Damascus rather insane when priced in local currency (in practice, transactions are done in dollars, euros or Emirati dirhams).

Photo credit above: Damascus houses

Uploaded to Pexels by Yazan Ali Photo taken June 5, 2020

The cheapest properties hover at around 400 to 500 million Syrian pounds, and prices can easily reach 20 billion Syrian pounds for some properties. However, most high end properties are presently valued between 1 to 3 billion Syrian pounds. Rental prices are not much better either, rents vary based on location, with some districts having their properties rent as 10 million Syrian pounds per month, and up to 17 million Syrian pounds per month in the best neighborhoods. The road to economic and monetary recovery from the Syrian Civil War will be long, arduous, and unpleasant.

Photo of Syrian bank notes, by Syria Scope Travel

Besides Damascus, the country is still experiencing instability and open conflict at various parts, especially from Israeli Air Force bombing. Despite pleas from the new government and its sponsors in Turkey to stop, the IAF continues to bomb remnants of the prior regime's military equipment as well as Syrian air bases that the Turkish armed forrces may use in the future. Whether this will escalate further or deescalate is not known, and investors must keep this in mind. The infrastructure in Damascus is marginal at best, and outside of the cities it is broken, and while rebuilding has begun, the pace and extent of reconstruction varies across the many cities of Syria. Suburbs that saw intense fighting, such as East Ghouta, remain partially in ruins.

Photo credit above: Damascus Cozy Indoor Still Life with Flower Vases. Uploaded to Pexels March 18, 2025 by Sami Raad Photo taken on February 28, 2025.

The legal situation in Syria is as of yet not clarified, the court systems are either overwhelmed, non-functional, or undergoing reforms to stricter applications of Sharia. It is very likely that within the next six months that new rules, procedures, and regulations will be put in place by the new government.

There are still more political considerations. The stability and key foreign relations of the new Syrian administration will determine if foreign investment can be drawn to Syria or remains aloof. Political shifts including toward populism as poverty is widespread could impact property rights and investment security from expropriation. It is also important to note that US, UK and EU sanctions remain on Syria are still preventing transfers in or out of the decrepit and under-developed banking system, another obstacle to major foreign property buyers.

Photo credit above: Damascenes gather at a landmark after the fall of the Assad government. Uploaded to Pexels by Ahmed Akacha Photo taken on December 8, 2024

However, Damascus still stands, and no amount of obstacles will change the prestige of this ancient city, which is close to the hearts and minds of all Arabs from the Atlantic to the Indian Oceans. Damascenes will rebuild and life will move on, and the real estate sector in Damascus will start to pick up. The question that must be decided by the appropriate observers is when will be the right time to invest, is going in too early in the coming months better than jumping in quite late, sometime in the 2030s?

Damascus has significant potential for long-term growth due to its historical significance and strategic location. Early investors might benefit from lower property prices and future appreciation – after all, with foreign currency you may be able to buy up quite a lot of properties, that 20 billion Syrian pounds actually translates to "only" 2 million, and most properties in Damascus remain cheap–that is dirt cheap, by Dubai or Riyadh standards. That 20 billion pounds figure we quoted earlier is closer to the ceiling. If you happen to be a Sunni Muslim and have liquid cash, lots of it, you could utilize the ongoing currency devaluation to your benefit.

Reconstruction and development projects are inevitable, and Syria presents foreign investors with a postwar situation of “High Risk, High Reward”. It is inherently risky due to the political and economic climate, however, if it all goes well with Western sanctions gradually lifting, early investors would stand to reap very substantial rewards if (or eventually, when) the situation stabilizes and the economy recovers.

The Gulf States and the Turks are already interested in rebuilding Syria, which means lucrative contracts for the well-connected and opportunities to increase Turkish and GCC influence and regional standing. It also helps that given the historical and cultural ties, Arabs and Turks will have particular interest, and their familiarity with the region as well as political connections will provide them with a strategic advantage over other foreigners.

Damascus, in 2025, will have many reconstruction projects start and hopefully finish by the end of the year, as a matter of fact, even by Mid-February 2025, some projects have already started, such as the development project in Meydan, Stradius, and Hamidiya, as well as Bab Touma.

Therefore, it is in the opinion of the author that you should only reliably invest in real estate in Damascus if you happen to have solid connections with Turkish or Arab associates in order to navigate the chaotic state of affairs. For the next many months, most Western investors from Europe or America will prove unable to invest in Syria by themselves, until all of the sanctions put in place are removed, and the new administration stabilizes the permitting and legal systems.

The decision to invest in Damascus is not a light one, and should be taken by those who are familiar with the country and its people, preferably Arabic speaking Sunnis. But–if you do manage to find a language with the new authorities, and you become an early bird–then you will have a strong foothold in Damascus.

Humans are tenacious, they have survived near-extinction events, genocides, mass ethnic cleansing and protracted warfare. The highly resilient Syrian people are going to rebuild their towns and cities, they will build it all back bigger and better, as this is all just a question of time. Life is not on hold, life goes on no matter the current controversies, and, hopefully, positive green shoots for the Damascus real estate market will emerge by the end of this year.