Pergola or Awning? How to Choose the Perfect Shade for Your Terrace or Balcony

If you’re lucky enough to own a home on the Costa del Sol chances are your terrace or balcony is one of your favourite spots. Whether it’s sipping a morning coffee with mountain views or hosting long, lazy lunches with friends, outdoor living is part of the Mediterranean lifestyle we all love.

But as temperatures rise or drop, well-designed outdoor cover isn’t just a luxury, it’s essential. Whether it’s the heat of midsummer or the cooler evenings of spring and autumn, being able to control the conditions on your terrace means you can use it comfortably all year round. That’s when the question comes up: Do I need a pergola or an awning?

At TerrazaBella, we hear this question all the time, especially from homeowners in the early stages of exploring options, whether they’ve just bought a property or are starting to improve a holiday home. So in this article, we’ll walk you through the difference between pergolas and awnings, their pros and cons, and how to choose the right solution for your outdoor space.

What’s the Difference Between a Pergola and an Awning?

Let’s start with the basics:

  • Awnings (toldos) are fabric-based retractable systems, usually attached to a wall, that extend out to provide instant shade. They can be manually operated or motorised, and are perfect for providing flexible cover over balconies or smaller terraces. View our range of awnings.

  • Pergolas are freestanding or wall-mounted structures, usually made from aluminium, wood, or steel, with fixed or adjustable louvres (slats) that offer shade and shelter. At TerrazaBella, we specialise in bioclimatic pergolas, which have motorised louvres that open and close to control sunlight, airflow, and rain protection. View our range of pergolas and bioclimatic pergolas.

Both provide shade, but they serve slightly different purposes, and come with their own set of benefits.

Free standing pergola

The Benefits of Awnings

Affordable and Flexible

Awnings are typically less expensive than pergolas, making them an ideal solution if you’re looking for effective shade without a major structural change.

Quick Installation

Because awnings attach to an existing wall, installation is fast and minimally invasive. Most of our awnings can be fitted in just a few hours and if you’d like the added benefit of motorised awnings we can help you too.

Retractable Shade

Awnings are great when you want shade one moment and full sunshine the next. With motorised models, it’s easy to adjust with a remote or app, ideal for changing weather or different times of day.

Perfect for Small Spaces

If your outdoor area is compact (e.g., an apartment balcony), an awning is often the best fit, minimal footprint, maximum shade.

🔻 Limitations of Awnings

  • Not ideal for windy conditions or heavy rain.

  • May not provide full coverage in larger terraces.

  • Limited in terms of structure — more function than design feature.

Sliding glass curtain pergola

The Benefits of Pergolas

Year-Round Outdoor Living

A pergola creates a more permanent outdoor room, a space you can use in sunshine, wind, and even rain (especially with optional side screens, glass curtains or integrated lighting and heating). It becomes an extension of your home.

Bioclimatic Control

Our bioclimatic pergolas have adjustable louvres that let you control light and ventilation. Close them for full shade or rain protection, open them for airflow and sunshine.

Stylish & Architectural

Pergolas are architectural features that add value to your property. With sleek modern finishes and integrated extras like LED lighting or glass curtains, they create a sophisticated, high-end outdoor feel.

Customisable

From colour and material choices to size and features (like sensors or side enclosures), pergolas can be tailored to your exact needs and aesthetics.

🔻 Limitations of Pergolas

  • Higher initial investment compared to awnings.

  • Requires more planning (permissions in some cases).

  • May not be necessary if your outdoor use is occasional or space is limited.

Why Are You Really Looking for Shade?

When people come to us asking about pergolas or awnings, they often start with a simple question: “What’s the difference?” But as we chat, it becomes clear they’re not just shopping for shade, they’re thinking about how they want to live.

Some are picturing themselves sipping morning coffee outside without squinting into the sun. Others want to host long lunches that stretch into evening, without worrying about sudden gusts of wind or too much glare. And many are starting to realise that their terrace could become a true extension of their home, not just a space they use in high summer, but all year round.

Here are a few of the most common reasons people start exploring pergolas or awnings, and which might suit your lifestyle best:


☕ “I just want to enjoy breakfast on my balcony without roasting in the sun.”

If your goal is simple, flexible shade for a small terrace or balcony, especially in the warmer months, then an awning might be exactly what you need. It gives you control over when and how much shade you have, without permanently altering your space. When the sun hits, you extend it. When you want full light or a clear sky, you tuck it away. Easy.


🍷 “We love entertaining and want a space that works whatever the weather.”

For those who love to host, a bioclimatic pergola turns your terrace into an outdoor room. The kind of space where you can have a glass of wine in February or dinner in September without checking the forecast. Add lighting, heating, or side screens, and you’ve got a space that works from day to night, season to season.


🏖️ “We’ve just bought a holiday apartment and want it to be comfortable for guests.”

If you’re furnishing a second home or holiday rental, an awning is often the practical, affordable choice. It adds value, provides comfort, and enhances the outdoor experience, all without a major investment. Plus, modern motorised versions are sleek, low-maintenance, and easy for guests to use.


🏡 “This is our forever home, and we want to enjoy every square metre.”

When you’re putting down roots, your outdoor space deserves the same attention as your interior. A custom pergola allows you to design a space that reflects your taste and lifestyle, whether that’s minimalist and modern, cosy and enclosed, or open and airy. It becomes a long-term investment in how you live.


🌿 “I want a shaded area for relaxing, reading, and escaping the midday heat.”

For quiet, personal moments, reading in the shade, lounging with a cool drink, or napping on a Sunday afternoon, both awnings and pergolas can work. But if you love the idea of creating a calm, serene ‘outdoor lounge,’ a pergola gives you more permanence and structure to build around.


🌞 “I want to use the terrace year-round, not just in July and August.”

This is the most common shift we see: homeowners realising their terrace doesn’t have to be seasonal. With a bioclimatic pergola, you can control light, airflow, and temperature, meaning you’re not limited by the sun or the season. It’s about outdoor living in all temperatures, not just avoiding the heat.


Start With How You Want to Live

Choosing between a pergola and an awning isn’t just about specs or styles, it starts with how you want to use your space. Do you need quick shade, or do you want a fully-fledged outdoor room? Is this a short-term solution or part of a long-term vision?

There’s no right or wrong answer, just the one that fits you. And that’s exactly what we’re here to help with. Contact us today – we look forward to helping you.


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