The traffic is driving on the right side of the road. The blue circular sign with a white arrow is characteristic of European road signage. The architecture, including the white building with green shutters and wrought-iron balconies, strongly suggests a Mediterranean country, likely Portugal. The cobblestone paving on the traffic island is a very common feature in Portuguese urban areas. I suspect this is in or near Lisbon, Portugal.

I am reasonably sure.

then: guess