One person died and parts of a unique historical neighborhood were damaged on Sunday in a fire in southern Sweden.

Rescue workers found a 25-year-old woman dead among the ruins after a blaze broke out among wooden houses built in the 16th century in the town center of Eksjo, some three hours' drive south of the capital.

"The house where she lived has totally burned down," police spokesperson Lasse Johansson told the news agency TT.

Authorities had not established the cause of the fire, which broke out early in the morning and engaged around 60 firefighters until mid-afternoon.

At that point, about 200 people had been evacuated from their homes and a block of the historical neighborhood had been destroyed in the flames. The blaze left about a dozen people homeless, having to resort to local hostels for accommodation.

"Today, what we feared would happen actually happened. In the worst-case scenario, we would have lost the whole area," local resident Annelie Hagg told the news agency.

A total of 54 buildings in the area have in the past been listed due to their cultural importance.