This is the number one area to see in Istanbul, even though it is touristy. You can walk to all the sites very easily or take the modern tram which is convenient. Nice tourist shops as well.
Sultanahmet is the historic part of Istanbul where almost all the historic attraction are located. The area is very walkable and all attractions lead to one another.
Touristy, but fun. Lots of action and sights all within walking distance. Lots of carpet touts, but they are just doing their job and add to the atmosphere
The most important sights of Istanbul are here. Within walking distance you can visit Hagia Sophia, Blue Mosque, the Basilica Cistern, Arasta market, and the Grand Bazaar or the Egyptian market are just 10'-15' away from the square. You can find also there many restaurants and cafes and some of them are really good.
The Grand Bazaar and Spice markets are worth seeing even if you do not want to buy anything. Take a lazy walk and look at the shops - the multitude of colors and smell from the spices are sure to tingle your senses.
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