Istanbul has been a top choice for shoppers for more than 1,500 years, famed as the trading point connecting the Silk Road from China with Europe. Visitors tend to flock to the famous Grand Bazaar in Beyazit, with what's left of its Ottoman atmosphere and cool covered streets (see Key Attractions). This is a good place for an overview of goods and prices, however better bargains can often be found in the smaller shopping areas of Sultanahmet and Beyazit.

Likewise, the famous Spice Bazaar in Eminönü is a must see, if only for the mountains of Turkish delight and its busy surrounding streets selling delicious olives, cheeses and dried fruits (see Key Attractions).

As a designated tourist quarter, the Sultanahmet area is competitive in terms of price and variety of specialised goods, such as carpets, kilims (flat-woven rugs), silver jewellery and collector's items. For a more authentic atmosphere, however, Istanbul's street markets are well worth a look, like the farmers' market (sacks of seeds and gardening products) adjacent to the Spice Bazaar, and, on Tuesdays, near Fenerbahçe Stadium, the enormous Kadiköy market (plus a weekend flea market too). On Sundays, the restored harbour area at Ortaköy is taken over by a craft and antique market.

Çukurcuma (along Turnacibaşi Sokak, off Istiklal Caddesi) is the heart of the antiques district. Istiklal Caddesi in Beyoğlu has a plethora of clothes, music, and book stores (an increasing number have lovely cafes inside), while the real fashionistas should head to the area of Nişantaşi, known as the Champs Elysees of Istanbul, with Gucci, Armani, Hugo Boss and the like, and the fancy department store Beymen, the Istanbul equivalent of Harvey Nichols.

Bağdat Caddesi on the Asian side also has a good range of fashion boutiques and department stores. Huge shopping malls tend to be found in the suburbs, such as Galleria, in Ataköy, and Akmerkez, in Etiler. In Levent, the huge swanky Kanyon mall opened in 2006 and is Istanbul's best collection of international designer brands.

Typical Turkish gifts include wooden boxes of Turkish delight, delicate albeit cheap tea sets, spice trays and painted ceramics. If you aren't tempted by the carpets, smaller and cheaper alternatives include bags and cushion covers made from old kilims. A blue ‘eye' talisman is highly popular in the city - almost every shop, home and room is equipped with one.

Outside of the state-owned markets, most shops stay open until late evening, although the official opening hours are Monday to Saturday 0900-1800. Even at midnight, however, there are traders on the main pedestrian thoroughfares selling toys, socks, black-market CDs and even antiques laid out on the ground.

Value-added tax (KDV in Turkish) is at 18%, and it is usually already included on most items, except hotels. Foreign passport holders are exempt on goods costing more than YTL118 in the specially designated tourist shops, which issue a specific invoice that can be presented at customs for refunds at the airport. Visitors should always make sure to get an invoice for items that could be considered ‘antique', as the penalty for smuggling antiquities is very high and customs officials are often poorly informed as to what constitutes an antique.