I would take away those top arches and have builtins either side of fireplace, have the tv placed on a shelf on the built in, like in the pics, you don't have to have it above the fireplace, if room is small it will feel like it's coming at you lol. Panel above fireplace and hang some artwork or a nice mirror. Quiet like the builtins with the back wall painted

No chipped stone what would be the purpose of that ? Get a nice T.V stand depending on your style ( we have no clue ) then mount the TV at proper viewing height which is the center of the screen at eyellevel when you are seated . I love the Besta system from Ikea but it is very contemporary so when deciding on stand make sur eit is low to allow proper TV placement

Hi, Congratulations on your new home! It seems really lovely place. I'd like to know whether are you planning on renovating whole space or just changing the furniture? If you are only going for furniture, here are few images of couch attached, please have a look. I say, align the couch along the walls so that you can get more area to use. Go for regular couch and chairs. If I'm not wrong TV is placed above the fireplace. Suggestion: bring it to eye level. TV is normally placed at the height of an average 30". Hope that was helpful -Thanks, -Neelam -Lines and Profile

If you put a long, narrow,waist height bookcase along the line where you have written 10'6", it will effectively divide the room but let the air flow. The dining area should be nearer the balcony. If you have a really big TV, you can put it on the extreme wall opposite the balcony. Place your big sofa along the line where you have written 10'6", and the smaller sitting ones along the two adjacent walls. The big sofa will separate the sitting area, but will allow air and light