A beautiful residential district is useless if your citizens are starving. The true challenge of Anno 1404 layout is the production chain. This is often called the "Min/Max" strategy.
Your Occidental city cannot survive without the South. The desert islands require a completely different layout philosophy due to Water access. anno 1404 venice city layout
For tiers 1-2 (Peasants and Citizens), space is cheap, and density is low. Use the 6x6 Block. A beautiful residential district is useless if your
Once you have mastered the grid, you enter the "End Game." This is where Anno 1404 becomes a painting tool. space is cheap