The terrace is located over the living space and requires a complete roofing system in order to protect the residents below. The roof build up usually comprises of a layer of waterproofing, insulation, ballast (stones) and the pavers. The terraces get typically fitted with the hose bibs, gas connections for the BBQ and, sometimes even hot tubs, fireplaces and planters. The terraces are typically more finished and luxurious outdoor space compared to balcony.
Balconies are essentially cantilevered slabs with an open space below. The space below can also be another balcony as it is economical to build typical floor plates in the high rise building. The balcony does not need to be waterproofed as there is no living space below to protect. Some developers choose to dress up the balcony floor by installing epoxy anti slip paint or even floor tiles.
There is a third type of balcony that deserves mentioning – Juliet balconies. Such balcony does have a full size door and a railing but does not have a useable outdoor space. The purpose of this balcony is to let more air and light in than a typical window. This space is not about getting you indoors but rather bringing outdoors in.