The Alhambra in Granada sits on a hill that overlooks the rest of the city. From here you can see a section called Sacromonte where former gypsy caves exist. They appear in the photo on the hill in the background, and you can see them if you click on the photo to increase its size.
Most of the gypsies no longer live in the caves, but the caves can still be visited. Flamenco shows can be seen there in the evenings, though I have read that the shows are sometimes of questionable authenticity.
These views were a treat that we had while we waited to enter the Alhambra. The amount of visitors to the Alhambra is controlled and it is indispensable to purchase tickets ahead of time. In my case, as I was staying in Seville, I obtained them as part of the price of a tour that left from Seville to Granada. Because of the time and distance, the only things that are possible on a day trip from Seville are the visit to the Alhambra and lunch in the city of Granada. To visit other sites in Granada more than a day trip is needed.
See my webpage on Spain at http://www.latinandcaribbeantravel.com/spain.html