Hanging Houses of Cuenca, a Historic Walled Town - Spain Holidays. Cuenca is a city set in the mountains of east-central Spain. According to information available, this city was founded by the Moors. It retained its Historic Walled Town structure with its steep cobbled streets and medieval castle ruins up to this date. Perched on a limestone spur high above the Júcar and Huécar rivers, it's most famous for its well-preserved hanging houses. Cantilevered over the Huécar gorge, the houses seemingly cling to the cliffs’ edges, giving it the nickname of 'Hanging Houses'.
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