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Sure you can, but whether it will be a good fit depends on what kind of fantasy city you're after and what your art assets are like. With Tiled you can make cities like in old school RPGs, but if you want roads and buildings at more flexible angles then it's probably not a good choice. Check out the world of Source of Tales for an example that was done with Tiled.

thanks for the answer! Its not the feel I was looking for though.