Balconies are widely recognized for enhancing urban livability, making them attractive elements to incorporate in building renovation projects. However, their impact on energy performance remains insufficiently studied, particularly in temperate climates, like the Mediterranean, where both heating and cooling demands must be considered. This article evaluates the energy impacts of integrating open balconies into housing retrofits on the space conditioning demand of dwellings through spatialized analysis at the urban block scale. Focusing on Barcelona’s Eixample district, a parametric Urban Building Energy Modeling (UBEM) was employed to assess how balcony design interacts with urban morphology (orientation, obstructions), building features (window-to-wall ratio, WWR), and balcony length. Results reveal a seasonal trade-off at the block scale: balconies increase heating demand (0.1–1.6 kWh/m²·yr) by reducing winter solar gain but decrease cooling demand (0.1–3.8 kWh/m²·yr) through summer shading. Net effects vary by unit position, with south-facing and moderately glazed dwellings benefiting the most. Deeper balconies (1.5–2 m) amplify both effects, while optimal depth depends on the window-to-wall ratio. Under future climates, retrofits combining insulation and balconies mitigate rising cooling demands more effectively than insulation alone, reducing block-level demand by up to 16%. Although balconies alone show modest energy savings at the block scale, they enhance localized thermal resilience. The study highlights the need for integrated retrofit strategies that balance thermal insulation with solar protection to address both current and future energy challenges while enhancing occupant well-being.