One of the unique and often unnoticed qualities of color is that it can psychologically change the size of the room. Light colors make rooms feel bigger. This is why ceilings are often painted white, making them feel higher. Dark colors draw the walls of a room together, so people rarely paint rooms in very dark shades. If your living room is small, go with lighter shades. On the other hand, if you have a large living room, especially if it feels too big, a darker color can make it feel more homey and intimate.
Basically, the idea is to furnish a small space with small furniture designs. This means having to choose among suitably small sofa set designs and small desks and tables. You might have to choose one of those corner lounge sofas so you could utilize corners very well instead of leaving them to the mercy of non-functional furniture.
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Furniture. Before selecting the furniture make sure what style you want. It can be Traditional, Contemporary, Victorian, European and mix of two. There is no hard and fast rule of sticking to one style as you can use your own creativity to create the style of your own. Also decide the color scheme in advance as your whole efforts will go waste at the end if there is a big mismatch. Once you have decided that shop for the furniture.
2. To help further open up the room, use mirrors and glass table tops. Mirrors reflect light and give the illusion of a larger room. Make sure that the mirror reflects a view or an ornamental item to enhance the room. Use glass table tops to give your small living room an open feel, rather than using hard wood table that further shrinks the room.
Fortunately, with smaller homes becoming more and more a popular option due to the rising prices of real estate and floor space, some furniture designers and manufacturers are actually coming up with more and more furniture designs with the small home in mind.