First, you should pick an interior design theme which appeals to you but which will also add appeal to a tiny space. Having a good amount of clutter in the living room will make the place feel smaller so avoid decorating themes that clutter up the room.
Visual Balance. Create a good visual balance between the used and unused spaces. By used space I mean the floor that has been occupied by the furniture pieces. It is not necessary to fill every corner of the living room.
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Magical Reflective Surfaces. Reflective surfaces work miracles in making a small living room grow into a larger space. If incase you have a large plain wall, you can very well add up a large mirror with some artificial light effects. This will give the most rich and spacious layout for your living room.
Use Of Over Scaled Objects. Over scaled objects could be categorized into screens, large paintings, picture frames and patterns. These objects definitely behold the charm of making a room look larger and appeal a larger space to your living room.
To begin with, you can paint only one wall with some attractive contrast colors. This will really give a very gorgeous look to the living room without spending much as in that case, you will not have to paint all the four walls. Make that tone a little darker than the tone of the other walls.