Vehicular Ad-hoc Networks (VANET) is one of the emerging and actual research fields in automotive companies and Intelligent Transportation Systems (ITS) designers. In the Smart City the presence of such networks opens the way for a wide range of applications such as safety applications, mobility and connectivity for both driver and passengers to exploit the transport systems in a smoothly efficiently and safer way. The 802.11p is a draft amendment to the IEEE 802.11 standard for vehicular communications. VANET are characterized by a dynamic topology triggered by the vehiculars mobility. In the Smart City the main problems of inter-vehicle communication are the speed, density of vehicles and the size of the buildings. For this purpose, we first examine and then display the simulation findings of the impact of different radio propagation models on the performance of vehicular ad hoc networks in terms of the characteristics of the physical layer. In our study, we have compared the performances of two routing protocols (AODV and OLSR) for three propagation model (twoRay ground, Rice and Nakagami). We study those protocols under varying metrics such as Traffic density, Smart City Architecture (size of the scenario areas) and the mobility of vehicle. Our objective is to provide a qualitative assessment of the protocols applicability in different vehicular scenarios. These two routing protocols are simulated and compared with Network Simulator-2 under Manhattan Grid Mobility Model. To conclude, the simulation findings are to be taken as a strong reference on the three routing protocols behaviour; however, it shouldn't be considered as an exact representation of its behaviour and real environment because of several simulation constraints such as: the dimension of movement field of vehiculars, the traffic type and the simulation timing.