Thank you roj leather and Simon for your recommendations. I like the hanging chair and the almanda creeper on the wall. This will certainly liven up the patio.

Leather sofas can really dominate the room and can give an overall cold feeling. I would add some earthy elements, like a wood coffee table with glass or metal. Go to Restoration Hardware's website and look at their sofa room scenes. And I'm sorry I think the art is too harsh for the room. That's all your eye goes to in the room. too overpowering. I would look for something softer or maybe a cool mirror and I would add color to the room with pillows and some colorful lamps. I also think woven blinds would look great. They add warmth and give a finished look. The color of your window treatments should contrast your wall color a bit, not match it or else it starts to look generic and blah.. You have warm walls, warm floors and the woven blinds, like Hunter Douglas brand would pull it all together for you.

This is a great space to work with. Since you have a good length, you can break the terrace into rooms.. with yew to divide the areas, or tall plants with shallow roots. Grow grass in curves and a pathway to lead visitors through the various rooms. Couple of ideas for garden 'rooms': Bamboo with golden stem or black stem as background, with charpai and 'moda' seating with cushions. A light under the foot of the bamboo, looking up will be alluring. Put up a trellis with fragrant climbers like jasmine and seating underneath on a part of the terrace which gets shade in the evening so you and your friends and family can relax. A dry garden with hardy plants like tall grass and Palm tree, pebbles on the ground to create the look. Plant a small flowering tree in one 'room' Add evocative lighting to create the mood in the evenings. As you can see there are many possibilities. Please ensure the ground is well protected from water seepage etc before you start planting. Also ensure the height of the periphery wall is taller for it to be safe for children and adults. Bear in mind the size of the plant, roots, sun and water needs before you choose your plants. Enjoy the creation..!

If it doesnt get much light have a look at the yellow based neutrals from F&B for the ŵalls (some of the red based may also work) http://www.farrow-ball.com/yellow-based-neutrals/content/fcp-content As the room is small I'd go for clear glass for the table as it won't make it the room feel smaller. Also use a large mirror/s on the ŵall to increase light and feeling of space. I'd also choose a sofa that is on legs (as you can see the floor beneath it doesn't close the room in so much) A light grey sofa could work or have a look at the carpet, sofa and cushion colours in this pic (I think it may be F&B string on the walls) For the cosy feel I'd add a floor lamp and table lamps and maybe a throw for the sofa. Maybe pop a couple of books on the coffee table with an ornament or 2 on top