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Laiki Geitonia (Popular Neighbourhood) is a pedestrianised quarter of narrow lanes and restored traditional houses in the heart of old Nicosia, immediately south of Ledra Street. The area was one of the first urban restoration projects in Cyprus, completed in the 1980s to preserve a fragment of what old Nicosia looked like before modernisation. The whitewashed and ochre-painted houses, with wooden shutters and overhanging balconies, now contain craft shops, tavernas, and small galleries.
Laiki Geitonia is undeniably touristy - it was designed as a showpiece - but it remains a pleasant place to eat lunch or browse for handmade lace, pottery, and leather goods. The tavernas serve reliable Cypriot mezes (EUR 12-18 per person for a full spread) and the area is lively at lunchtime. The Leventis Museum sits on its northern edge, making it easy to combine both. The lanes are shaded and cool even in summer, and the quarter gives a sense of pre-war Nicosia's domestic architecture that has largely disappeared elsewhere.
Pro Tip: Skip the souvenir shops on the main drag and look for the small workshops on the back lanes. Several artisans still make traditional Lefkara lace and silver filigree on site - prices are lower than in tourist shops.