The blast occurred in the Yenibosna neighborhood, several kilometers from Istanbul Ataturk Airport, the country’s largest.
Television footage showed damaged vehicles, shattered glass and broken windows in the residential area.
Governor Vasip Sahin said all of the wounded were civilians and that investigations into who might be responsible were ongoing.
There were no immediate claims of responsibility on Thursday. Kurdish, leftist and Islamic State (ISIS / Daesh / ISIL) militants have all carried out bomb attacks across Turkey in the past.
The last blast in Istanbul was in June, a month before an attempted coup to overthrow President Tayyip Erdogan’s government, when 45 people were killed in a triple suicide bombing at the airport. That attack was blamed on Islamic State.
There have been other attacks in the east of the country, including the bombing of a wedding party near the city of Gaziantep in August, when more than 50 people were killed.