No, there are no littler people in Monopoly. This is a model village of a rural German town.
The last Monopoly project I worked on was Monopoly World Cities. The premise was that each color of the board was a small world version of a different world country. Jack Sy and Alex Leon, who helped me on the Future Monopoly project as well, managed to handle most of the design work for this, but I did get to tackle a few things. While the early steps of a property in the other games usually just consists of a sign post or garden, the early stages of the World Cities properties were supposed to be these mini parks. Instead of having a small focus in the middle, they needed to be modular and work as quarters. The Spain design is a little bit of an exception, but the idea was, that as soon as two quarters of the property were bought, it would change to the fountain. Any additional quarters of property that were bought would stay only display the bush arrangements.