OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

you are thinking about the space right now. it looks odd, no doubt. 1) when you fill in with the furniture, just make sure the three steps are hidden. 2) consider three potted plants of different height, so the rectangle is complete. 3) glass bowl with Siamese fighting fish for each step 4) figurines of different heights 5) 2inch square wooden bar on each step up to the top of the rectangle. and complete the entire rectangle if you want with a smaller rectangle open in the center my suggestion is, there is a reason why this space ended up like this. it will look great once you put something there. things like these are what make your house unique.

@Rock Doc: Are you addressing this to me? I haven't actually bought these tiles yet - when I do, I will definitely be going for the handmade ones. They're a work of art and irreplaceable in my opinion. However, there are also screen-printed tiles available in the market in more or less the same patterns; the workmanship is of course different, but you get them cheaper, and they're also more easily available. You could give that a shot. I'd recommend Aakaar Flooring Solutions - they're here on Houzz and are able to provide both the above-mentioned types.

Hi Farooq, you should go for wall paneling on that wall with a concealed door. The wardrobe can be a part of the unit in front.