An important element to consider when decorating small spaces is to only use items you love. In small areas there won't be room for items that don't make you happy.

Coordinate

A room or area full of mismatched pieces won't look as nice as it could. Even if the pieces are expensive, well made & comfortable, if they don't match, it'll show.

Make it comfortable

Not in regards to the actual seats, but the overall comfort of the room. For example, a huge abstract painting may dominate a room or a mountain of throw pillows may be uncomfortable.

Consider who uses the room

It should go without saying, but the décor for a 10-year-old girl most likely won't appeal to a 16-year-old boy or a 50-year-old man. In group areas, gender & age neutral work well.

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