While business activities were beginning to spread beyond the city walls, the administrative center (the Turkish governor's residence) continued to be located within the fortified hilly peninsula. Between two and three thousand people were packed into this area, which measured less than 25 acres. Initially, this was where the small Greek community of Panayia (on the site of the Byzantine town of Christoupolis) was located.
The future regent of Egypt, Mohamed Ali, was born in the old city. During his heyday, in 1812, he built the poorhouse where the ancient Parthenon temple had stood; also called the 'tebelhane' (inn for the lazy), it was later converted into a muslim theological school.
The Greek business community, which from the mid-19th century had begun to show considerable growth, built new churches (Ayios Ioannis, 1865-1867), schools (e.g. the Parthenagogeio or Girls School), hospitals (e.g. the Evangelismos), and some splendid mansions.
The very profitable tobacco business had already started to attract a constantly rising number of Christians.
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