Markarth Wizard Balcony is located above Understone Keep in Markarth. It is accessible via Calcelmo's Laboratory, and leads to Calcelmo's Tower. There is a section between the banister and Calcelmo's Tower where you can jump down or drop into the city. If you drop into the pool at the bottom of the waterfall it is possible to survive, otherwise the use of the Become Ethereal shout is highly recommended.