I may be wrong, but I think this was intended to be a living room and dining room. So I would move the whole seating area down to where the rug is in front of TV and get a table and chairs.

I Would Say you have a nice airy, ventilated and well lighted room.. Absolutely why natural light to severe needed for any home. Aahan what you are thinking is absolutely right that having a modern couch can make this room look completely different. also try changing the room colour make it light which will give you the much needed change... fresh... and elegant look....use white or ivory. Something like the photo shown below.. or also refer to our work which we have put up on houzzz...

Hi Sarita, We would suggest three options - 1] You may place your sofas parallel and opposite to each other leaving the space in between to access the balcony. Not the best facilitation but it will give you an unobstructed space. Or you may place an L shaped sofa in front of the balcony door but leave space between the two for passage. This will help bring the sofa closer to the tv and leave you with easy access to the balcony. You can also put the tv unit on the left wall with a set of sofas in front. 2] Put a partition between the living and dining space that would house the tv unit on one side and the dining table on the other. This will screen the dining area and allow you to place your sofa(s) more flexibly and without obstructing the balcony. It would however make the dining area look a bit cramped. 3] Avoid putting the tv unit in the living space altogether. Put tv in your bedrooms instead. This will ensure privacy to the viewers even when there are guests over. You may also convert a bedroom into a tv room if you don't need it so that your formal and informal spaces stay separate. Hope these ideas help. Regards, RnD Atelier Nagpur

Sir! what is the space of your living room and in what direction are you planning to put the sofa set at?