1. Choose light furniture with simple lines
There's only one thing I would change in this room. With everything else so light , I find the darker wood of the table somewhat harsh. Something lighter would be more cohesive
Choose furniture first and look for pieces that are light in colour and have legs. Lighter colours occupy less visual weight and legs provide an unobstructed view of the floor, allowing the space to appear more open. Coffee and end tables in metal and glass also allow the eye to move through the pieces consuming little visual space while dark wood furniture has the opposite effect. The cow hide ottoman above works because it is overall light and has great legs. It also serves to connect the tones of the wood pieces in the room.
2. Choose a lighter colour scheme
Neutral colours mixed with lighter shades of blue and green work well in a small living area. Cooler colours recede thus giving the impression of a larger space. . Use hints of brighter colors in accent rugs or pillows. The golden accents above warm up this space. Small spaces work best with a three-color (or less) palette as in the room above. If you love texture consider using a monochromatic scheme. Bare wood floors in lighter wood tones also add to a clean, flowing feeling. Dark floors have the opposite effect. Unfortunately the current trend for darker floors often causes many problems including closing in a space. The dark mirrors at the end of this space enlarge it. Which leads me to ...
3. Use mirrors effectively
4. Emphasize vertical lines
5. Match the furniture to the scale of the room
6. Choose multifunctional furniture
One of the best ways to deal with limited space is to choose dual-purpose furniture, e.g., a pair of ottomans can double as coffee tables, with storage inside; coffee tables with a lower shelf can hold baskets, books, covered boxes for storage; consoles with doors make tidy hiding places, bookshelves used as a sofa table when you can't walk around the sofa, etc.
7. Build in storage
Give a small space character and maximum function with a bank of custom-built cabinets in a light colour. Built in cabinets and shelving triple storage options. Keeping the colour of built ins light will increase the visual space. Arrange objects on open shelves in an artful way. Leave lots of open space and vary the sizes and shapes of decorative objects.
8. Harmonize large pieces of furniture
9. Control clutter
Many of these ideas will work in much larger rooms too. The most important thing to remember is to select furniture that is the right scale for the space you are decorating.