The problem is that there are no dwellings. Unfortunately, they need to be created. However, they might be available in that mod for the Naga city.
This is how I envision the Naga city:
1. Everything related to the new city (models on the map, models in the city menu, new buildings, etc.).
2. Naga dwellings (from 1 to 7 and an outpost).
3. Naga heroes with the implemented ability to walk on water if the hero's army consists only of Nagas (for example, give all Nagas the racial ability 'Naga' and create a script that checks if all units in the hero's army are Nagas, and if so, grants the ability to walk on water).
4. If it is not possible to introduce a new racial skill, then link the Naga to the closest faction and create a script that replaces the original faction's city with the Naga city, and all its dwellings with Naga dwellings, if a Naga hero is selected when creating the game.
5. Create a script that changes the original faction's buildings to the Naga city's buildings, so that the Naga city is not just a visual replacement for the original city, but has new units and its own buildings (approximately like the NTBF mod).
6. Unique Naga artifacts.
7. Add everything else that I might have forgotten to mention.
Well, in that case, it would be better to create the Elemental city. It exists in the RTF project. The only thing is that you need to duplicate the buildings and units so as not to replace the originals, and the building tree should be Elrath with it, let it be like the original faction. The point of a different faction is precisely in the style of new units and a new tactic for playing with them.
IMHO:
The human counter-attack ability would suit the Nagas best.
Orcish fortresses: war cries and totems.
Conjunction: summon reinforcements, similar to demons.
Forge: necromancy with its own units (although, it is unlikely that two tables can be created).
What other factions?