Terrace vs. Balcony – What’s the Difference? [Clarified]

Terraces and balconies are two popular architectural features that let you enjoy fresh air and outdoor space – whether in a house or an apartment. While often confused, they differ significantly in construction, location, function, and use.
If you’re planning a build, renovation, or redesign of your outdoor area, this guide will help you understand the key differences – and choose the solution that best suits your needs.

1. Location & Structure – Key Technical Differences

Terrace – Stable Ground-Level Base

A terrace is an outdoor area built directly on the ground or above a ground-floor space (like a garage or basement). It’s usually at the same level as the living room or kitchen, forming a natural extension of the home.
This makes it easily accessible for children, the elderly, and people with disabilities.

Typical terrace construction:

  • point or strip foundation,
  • poured concrete slab,
  • compacted gravel base with joists (e.g. aluminium or composite).

Terrace advantages:

✔ does not affect the building's structure,
✔ often does not require a building permit (e.g. if ≤ 35 m² and unroofed),
✔ simpler and more cost-effective to build.

Balcony – Suspended Architectural Feature

A balcony is an elevated structure that projects outward from the building’s facade. It is typically located on an upper floor and must be structurally integrated during the building design phase.

 

Balcony construction includes:

  • secure attachment to the floor slab or independent steel support structure,
  • waterproofing (with slope layer),
  • safety railing of at least 110 cm (per code),
  • weather-resistant finish – e.g. frost-proof tiles, composite decking, or resins

Though more complex to build, balconies are essential in multi-family housing and modern apartments – especially where ground-level terraces are not possible. Structural integrity and proper sealing against moisture and frost are crucial.

2. Legal Requirements and Permits – When Are They Needed?

Terrace:

For a ground-level terrace under 35 m² and without a roof, usually no building permit is required – a simple notification to the local authority often suffices.
However, if the terrace is elevated, roofed, or involves a permanent structure (e.g. pergola with a fixed roof), a building permit may be necessary.

Balcony:

Unlike a terrace, a balcony is a structural element of the building, meaning that its design, construction or modification requires a permit and the involvement of a structural engineer.
In multi-family housing, you also need the approval of the housing association or building management.

3. Arrangement Possibilities – Space, Function, and Style

Terrace – an open-air living room 

A terrace offers broad design potential tailored to your lifestyle and the seasons. Thanks to its larger area (often dozens of square metres), it can act as a fully functional outdoor living space.

Ideas for terrace zones:

  • Lounge area with outdoor sofas, a coffee table, and a weatherproof rug
  • Outdoor dining area – a large table with chairs for the whole family or guests
  • Relaxation zone with a hammock, loungers, hanging chair, and LED mood lighting
  • Roof or sunshade – pergola, awning, or fixed canopy
  • Heating – infrared heaters, bio fireplaces, or patio heating for extended use
  • Large potted plants, decorative screens, or privacy walls with wood or composite lamellas

Materials: popular options include composite decking (WPC) – wood look, high durability, low maintenance. Alternatives: stoneware tiles, paving stone, natural rock, artificial turf.

Other terrace uses: yoga, remote work in summer, children's play, or outdoor cooking (BBQ, summer kitchen).

Balcony – compact space with great potential

Although smaller and structurally limited, a well-designed balcony can become a cozy retreat or even a mini urban garden.

Balcony inspiration:

  • Foldable/modular furniture – bistro set, compact bench with storage
  • Plants in planters or boxes – for vertical gardens or herb walls
  • Soft furnishings – pillows, throws, small balcony rugs
  • Decorative lamellas or reed mats – privacy and wind protection
  • Lighting – LED string lights, lanterns, solar candles

A balcony can also serve practical functions – drying laundry, seasonal storage (e.g. bikes, skis), or a small home office spot.

⚠️ Attention: weight and load capacity are crucial due to structural limits.

5. When to Choose a Balcony vs. a Terrace?

Choose a terrace if:

  • You're building a single-family home and have access to outdoor ground space.
  • You want to create a multifunctional relaxation area outdoors.
  • You value design freedom and a larger usable surface.

Choose a balcony if:

  • You live in a multi-family building or lack access to private ground.
  • You need a cozy outdoor nook without major investment.
  • You want additional usable space for drying laundry or a small urban garden.

Summary – Terrace and Balcony: Two Sides of the Same Idea

While terraces and balconies both provide outdoor relaxation space, they differ significantly in structure, function, and flexibility.
A terrace offers more space, comfort, and versatility. A balcony is perfect where space is limited.

 

 

Your choice should reflect location, budget, purpose, and lifestyle. In both cases, quality finishes are key to durability and style – and that’s where WPC composite materials truly shine.

 🔗Explore Liderwood composite decking – durable, low-maintenance, and stylish for years to come.
🔗Discover Liderwood click deck tiles – fast, elegant, and functional balcony upgrades.
📞 Contact us – we’ll help you plan, price, and install everything you need.